Ethanol Lobby to White House: Biofuel Rule Rollback Won't Lower Gas Prices
(Bloomberg) -- The ethanol industry warns the Biden administration that rolling back national biofuel blending rules to lower gasoline prices would be a big mistake.
“We were shocked to learn that one of the potential actions reportedly being discussed by the White House is ‘relaxing mandates to mix gasoline with biofuels’,” Renewable Fuels Association CEO Geoff Cooper wrote to Brian Deese, director of the White House National Economic Council.
- Lowering biofuel blending requirements under the Renewable Fuel Standard would lead to higher, not lower, gasoline prices, as well as boost tailpipe pollution tied to climate change and public health risks, Cooper argues in Nov. 15 letter
- The Biden administration should focus instead on proposing overdue blending rules and expanding higher ethanol blends nationwide: RFA
- NOTE: While wholesale prices of conventional gasoline have recently been at the biggest discount to a 10% ethanol fuel blend since 2014, RFA stressed that the increase is a temporary aberration related to higher demand following a pandemic-driven slump in production
- Read RFA’s letter here
- Related: Biofuel Mandate May Be Biden’s Best Shot at Quick Gasoline Fix
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