Houston Chronicle: Perry Pushed For Ethanol Waiver After $100K Donation

(The Politico)  The Houston Chronicle (hat tip propublica.org) is reporting that Texas Gov. Rick Perry (R) sought a waiever from federal ethanol mandates after a corporate donor gave $100,000 to the Republican Governors Association, which Perry chairs.

Lonnie 'Bo' Pilgrim, of poultry producer Pilgrim's Pride, is concerned that ethanol mandates drive up the price of corn, which ethanol is made from, thereby raising costs for the poultry and livestock industries.

"Gov. Rick Perry's request for a waiver of federal corn-based ethanol production mandates was prompted by a March meeting he had with East Texas poultry producer Lonnie 'Bo' Pilgrim, who six days later gave $100,000 to the Republican Governors Association chaired by Perry," the Chronicle reported.

"In the three weeks following that donation, Perry's staff began preparing to submit the renewable fuel standards waiver request to the federal Environmental Protection Agency, according to 596 pages of records obtained from the governor's office by the Houston Chronicle under the Texas Public Information Act."

The Chronicle added: "Perry's April 25 waiver request has national implications because an EPA waiver of renewable fuel standards would affect all ethanol production in the United States, not just in Texas. On Monday, more than four dozen House Republicans made a similar plea to the EPA, asking for a reduction in ethanol production mandates."

Perry is seeking to cut the ethanol mandate, 9 billion gallons in 2008, by half. Nearly 50 House Republicans sent a letter to EPA on Monday making a similar request. About 30-35% of the nation's corn crop goes toward ethanol production.

Bo Pilgrim and his family members have been big donors to the GOP and Republican lawmakers over the years, according to Federal Election Commission Records.

For instance, Lonnie Pilgrim donated $25,000 to the National Republican Congressional Committee in March 2007, plus another $20,8000 directly to House Republicans, including $9,600 to Rep. Bob Goodlatte (R-Va.), ranking member of the Agriculture Committee.  

Ken Pilgrim, a senior VP at Pilgrim's Pride, gave $18,500 to the NRCC on May 12, 2008.

Pilgrim's Price PAC has also given out more than $37,000 to lawmakers this cycle, with 85% of that total going to Republicans, according to opensecrets.org.

Pilgrim's Pride is the largest chicken processor in the United States, with sales in 2007 of $7.6 billion. It has more than 53,000 employees in the United States and Mexico, and approximately 6,400 "growers" supply it with chickens.