Joe Biden said that summertime sales of higher-ethanol gas will be allowed as prices remain elevated
WASHINGTON — President Biden will announce on Tuesday a suspension of a summertime ban on sales of higher-ethanol gasoline blends, which is predicted to lower gas prices.
On Tuesday, the Environmental Protection Agency issued a waiver that will allow the blend known as E15 to be used in 51 states between June 1 and September 15. Ethanol sales would bring an estimated 10 cents off every gallon of gasoline purchased at the approximately 2,300 stations in the country that offer it. The move is said to be moving us toward “energy independence.”
This decision comes as Mr. Biden faces increased pressure to bring down energy prices. It’s the fastest rate of inflation since 1981 and it is going to depend on this decision if we’re able to see an end in sight for high gas prices.
Mr. Biden is expected to make the announcement about making E15 available on Tuesday at a plant in Menlo, Iowa. The move follows a plan made by the president last month to release one million barrels of oil per day from the U.S. Strategic Petroleum Reserve. This will increase productivity and lead to lower gasoline prices for drivers across America.“
Ethanol is a flex fuel that fits into your gas tank and has been included in some types of gasoline for years to help reduce dependence on oil. The higher volatility can increase the level of smog. Because of the need for fewer emissions & less use of heat, some environmental groups have traditionally objected to lifting the summertime ban and oil companies are worried about competitors selling ethanol.
Economists are debating how the price of fuel is affected by ethanol, but there’s no doubt it has political benefits over the long term.
When asked about the leakage of gasoline, in this case, climate policy expert David Victor noted that “this one is much more of a transparently political move.”
Colorado lawmakers are urging Mr. Biden to fill the gap left by U.S. sanctions on Russian oil exports, with biofuels .” Colorado has a talent for producing high-quality fuels and biofuels for use in vehicles, we welcome the opportunity to help address our nation’s energy security needs,” said Colorado Gov. Hickenlooper. The U.S. Energy Department made it clear back in April that it is eager to provide federal financial incentives for companies to produce more ethanol, including in Colorado.
The Colorado oil and gas industry has long seen a brighter economic future for the state in producing high-value biofuels that are compatible with the existing petroleum infrastructure. The U.S. Energy Department made it clear back in April that it is eager to provide federal financial incentives for companies to produce more ethanol, including in Colorado.
Ethanol laws are designed to reduce the use of oil (by mandating increased levels in the fuel mix) while also reducing greenhouse gas emissions. Two new laws were introduced, in 2005 and 2007, requiring companies to blend ethanol into gasoline. However, the mandate has received significant criticism regarding fuel prices and the impact it has had on greenhouse gas pollution.