EPA Leaks Lower RFS Proposal

Last week EPA Administrator Gina McCarthy has responded to a leak of a proposal by her office that would lower the volume requirements for ethanol in the Renewable Fuel Standard for 2014. Growth Energy CEO Tom Buis says McCarthy assured them the agency hasn't made any decisions yet and the Office of Management and Budget is still reviewing the proposal.

Buis: "At least Gina McCarthy and Secretary Vilsack both ca me out and said what needed to be said. This is not a final proposed rule. And then again the key word there is proposed -- even when they come out with something -- then we go through the public comment period and then they start the process again."

Buis says the source of the leak is disturbing because of the negative impact it had on the corn and energy markets - and they're demanding answers.

Buis: "Whoever leaked this was irresponsible if not illegal. We asked CFTC and DOJ to investigate it and see if it was market manipulation because there is serious economic impacts there."

Buis says there were actually three proposals. The leaked version indicated EPA was considering just 15.2-billion gallons of renewable fuels in 2014 versus the 18.15-billion mandated in the Energy bill.

This would reduce the volume of corn-based ethanol to about 800 million gallons less than this year's 13.8 billion gallons.