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EPA turns down states' request for ethanol waiver

The Environmental Protection Agency has denied requests from several governors to waive production requirements for corn-based ethanol. 

A renewable fuels law requires that 13.2 billion gallons of ethanol be produced this year. 

That's good for corn farmers, but it's angered poultry, hog and cattle farmers. They say they've seen big jumps in corn-based feed costs as corn is diverted to make ethanol vehicle fuel. 

States requesting the waiver say reduced corn production due to this year's drought has made the problem even worse. 

The EPA says it studied the effect of waiving the requirement and believes it would have had little impact on corn prices.