News Releases & Statements
American Beverage Association Statement in Response to EPA Decision on Renewable Fuels Standard
FOR IMMEDIATE RELEASE
August 7, 2008
ABA Press Office
AMERICAN BEVERAGE ASSOCIATION STATEMENT IN RESPONSE TO EPA DECISION ON RENEWABLE FUELS STANDARD
Earlier today, U.S. Environmental Protection Agency (EPA) Administrator Stephen Johnson denied Texas Governor Rick Perry's request for a waiver of the Renewable Fuels Standard (RFS). Federal law allows EPA to grant a waiver of the RFS ethanol mandate in the case of severe economic harm. On April 25, Gov. Perry submitted a request to the EPA to reduce the RFS mandate by half – from 9 billion to 4.5 billion gallons blended into the national fuel supply in the coming year. In response to the EPA decision, Craig Stevens, spokesman for the American Beverage Association, said:
“We are disappointed with EPA's decision that will continue to mandate the diversion of corn from food sources to fuel. While we agree that our nation must find creative ways to reduce our reliance on imported oil, we disagree that it should come at the cost of rising food and beverage prices for American families.
Specifically, we anticipate the rising cost of corn - due to its diversion to fuel - will cost the beverage industry about $2 billion this year.
We believe that a more market-based approach is needed. And we continue to call on Congress to reduce or repeal the 54-cent per gallon tariff on imported ethanol; reduce or repeal the ethanol blender's credit; and reduce or repeal the Renewable Fuels Standard mandate.
We stand ready to work with legislators on sensible policies that can help reduce our oil dependence while not increasing food and beverage prices to consumers.”
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The American Beverage Association is the trade association representing the broad spectrum of companies that manufacture and distribute non-alcoholic beverages in the United States.