The U. S. Environmental Protection Agency (EPA) has did not agree to a request from several states and livestock groups in the country for a waiver on the Renewable Fuels Standard (RFS), which required millions of gallons of ethanol to be mixed with the national gasoline supply.

The federal agency said that it did not find any evidence suggesting severe economic harm that would justify a waiver from the mandate. Governors from several states, congressional lawmakers and U. S. ranchers, including the Texas and Southwestern Cattle Raisers Association (TSCRA) have asked the government to grant the waiver after the worst drought in 50 years resulted in record high prices of corn.

Gina McCarthy, assistant administrator for EPA's Office of Air and Radiation said, "We recognize that this year's drought has created hardship in some sectors of the economy, particularly for livestock producers. But our extensive analysis makes clear that congressional requirements for a waiver have not been met and that waiving the RFS will have little, if any, impact."

The EPA also said that the data reviewed by the agency showed that the waiver would have a minimal effect on corn, food or fuel prices in the country.