FOR MORE INFORMATION:
Monte Shaw, 515-252-6249

FOR IMMEDIATE RELEASE

August 7, 2008

EPA Denial of RFS Waiver Request Protects Consumers, National Security and Iowa Economy

JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) today applauded the Environmental Protection Agency (EPA) for denying a request from Texas Governor Rick Perry to slash in half the federal renewable fuels standard (RFS), which requires oil companies to account for using a minimum of nine billion gallons of renewable fuels this year.

              “We applaud the EPA for making a fact-based decision to maintain the current RFS schedule, which is reducing our dependence on foreign oil more than at any time since the 1970s,” said IRFA Executive Director Monte Shaw. “The EPA denial protects consumers, national security and Iowa’s economy.”

              Texas Governor Rick Perry had formally requested that the EPA cut the RFS requirement for 2008 from 9 billion to 4.5 billion gallons, claiming that doing so would reduce corn prices and benefit consumers and livestock producers.  Gov. Perry advanced this theory even after an analysis of his proposal by Texas A&M University determined that cutting the RFS would not have a major impact on corn prices.

              “The facts are clear:  high oil prices are the driving force behind higher food prices and the big squeeze on consumer wallets across the board,” added Shaw.  “Even as ethanol production has increased over the last several months, corn prices have fallen more than $2 per bushel – at the same time crude oil prices have fallen.  Without biofuels, fuel prices would be much higher.  Also, as the leading producer of biodiesel and ethanol, Iowa’s economy would have been dealt a severe blow had politics won out over sound factual analysis.”

Iowa is the leader in renewable fuels production. Iowa has 31 ethanol refineries with the capacity to produce nearly 2.4 billion gallons annually. There are 13 ethanol refineries under construction or expansion that will add nearly over 1.4 billion gallons of annual capacity.  In addition, Iowa has 14 biodiesel refineries with a combined annual capacity of over 315 million gallons in operation.  Many additional renewable fuels projects are under development.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s ethanol and biodiesel producers. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.

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For more information, visit the Iowa Renewable Fuels Association website at:  www.IowaRFA.org.