EPA decides not to decide on ethanol waiver just yet

Anti-ethanol forces were left hanging by the EPA today, as the Associated Press reports that the federal agency “put off a decision…to temporarily lower ethanol requirements for gasoline,” a measure introduced by Texas governor Rick Perry because he felt that current ethanol demands were raising corn prices. Other Republicans, including GOP presidential candidate John McCain, have voiced their support for this ethanol mandate waiver, but the EPA has about 15,000 public comments to wade through - and probably as many meetings with other departments to attend - before a decision can be made.

Oddly enough, this marks a rare occasion where cumbersome bureaucracy has an upside, because the EPA also needs to review how closely ethanol demands and food prices relate. The Texas Corn Producer notes that “the bushel price for corn…has dropped by more than 25 percent,” falling below $6/bushel Tuesday thanks to improving weather (not that anyone on the oppressively humid East Coast noticed) and falling oil prices. And with planted acres increasing “by more than a million acres over the previous month,” despite flooding in the Midwest, the relationship between ethanol and expensive corn might not be as cut-and-dry as previously assumed. Of course, we’ve been saying that for weeks now, but that’s another matter.

But the real meat of this development, at least in our opinion, lies in each side of the issue taking it for granted that they’ve won. Gov. Perry praised the EPA’s sedulousness while describing the ethanol waiver as “an essential step toward decreasing the devastating statewide, national and international impact of skyrocketing feed and food costs.”

Meanwhile, Renewable Fuels Association spokesman Matt Hartwig said the EPA is just “taking extra time to dot all the i’s and cross all the t’s to ensure their explanation as to why they will be denying Governor Perry’s request is comprehensive.” Wow. That sound you just heard was Gov. Perry getting served.