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Perry asks for cut in ethanol mandate

06:36 PM CDT on Monday, April 28, 2008

By ELISE HU
KVUE News

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KVUE's Elise Hu reports
04/28/2008
Local/State Videos

As the global food crisis continues, Texas Governor Rick Perry is asking the federal government to reduce the mandate for producing ethanol, which is made from corn.

"Any federal mandate that benefits one industry to the detriment of millions of consumers, that's a problem," said Perry spokeswoman Allison Castle.

Economists blame growing global demand, weather problems in some producing nations and the biofuel frenzy for growing grocery bills.

The ethanol mandate was part of an energy bill signed into law by President Bush in 2007. It requires that nine billion gallons of ethanol be used nationally in 2008.

Perry wants that mandate reduced by half, and on Friday became the first official in the nation requesting a waiver of the mandate, in a letter to federal regulators with the EPA.

"Granting this waiver will provide Texans much needed relief at the grocery store," Perry writes. "And it will ensure that the livestock industry in Texas is able to continue providing a significant source of food products for our nation."

Critics say because the explanations for rising prices is complicated, relaxing a single mandate won't significantly lower food prices.

In the meantime, food pantries across Central Texas say they're feeling the pinch.

"More people are coming to get the food, and it's just a big ripple effect and it's hitting us hard," said Kerri Quenell, spokeswoman for the Capital Area Food Bank.

While food and energy policies are debated, local agencies are relying on the community to step up in its support.

"[We] hope that they will do as they always have and help us out," said Quenell.

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