WUD supports call for waiver of ethanol fuel mandate

Western United Dairymen is urging the California Congressional delegation to ask EPA Administrator Lisa Jackson to use her authority to grant a waiver of the ethanol fuel mandate due to the severity of the drought in the Midwest Corn Belt. In a letter to members of California’s Congressional delegation asking that they sign on to a bi-partisan “Dear Colleague” letter, WUD says the severity of the drought requires immediate action. The Renewal Fuel Standard (RFS) mandates that 36 billion gallons of renewable fuels be used in the nation’s fuel supply by 2020, with as much as 15 billion gallons of the mandate being fulfilled by corn ethanol. In 2013, it is estimated that over 80 percent of this mandate–13.8 billion gallons–will likely be fulfilled by grain ethanol that comes from corn. “The EPA administrator has the authority to reduce the required volume of renewable fuels in any year based on severe harm to the economy and we are requesting our Congressional delegation act on behalf of California’s dairy families by asking Administrator Jackson to use that authority now,” said WUD President Tom Barcellos. California dairy producers have seen their cost of production increase from $13.03/cwt to $18.09/cwt in just the past decade, noted Barcellos. Feed costs are the main component of the cost of production. July 27, 2012 WUD Friday Update