WASHINGTON — Sen. Kay Bailey Hutchison, a Texas
Republican, is drawing up legislation that would freeze the US
renewable fuels requirement at 2008 levels - 9 billion gallons per
year, her spokesman said on Tuesday.
Texas is the biggest US cattle producer by some
measures - with 2.8 million head of cattle on its lots. Cattle and
poultry producers rely on grain for feed and have been hit hard by
soaring corn prices.
Texas Gov. Rick Perry last week petitioned the
federal government to cut its renewable fuel requirement in half
this year in order to tame soaring grain prices.
Powerful Corn Belt lawmakers such as Sen. Chuck
Grassley, an Iowa Republican, have pledged to fight any legislative
attempt to reduce or delay the renewable fuels mandate, which has
been a boon to their state’s farmers.
President George W. Bush said on Tuesday he is
deeply concerned about high food prices but believes ethanol
production is responsible for only a small part of food inflation.
He said the rise in food prices has been caused
by weather, increased demand and energy prices.
"And the truth of the matter is, it’s in our
national interest that we – our farmers – grow energy, as opposed to
us purchasing energy from parts of the world that are unstable or
may not like us."
The new energy bill signed into law last year
calls for the production of 9 billion gallons of biofuel this year
and 10.5 billion gallons next year. The requirement would rise to 36
billion gallons in 2022 - with ethanol supply from corn capped at 15
billion gallons.
With more than 25 percent of corn production expected to be
diverted to make biofuel this year, according to the US Department
of Agriculture, the grain has soared to record highs above $6.50 a
bushel.