EPA raises amount of ethanol that must be blended with gas

Jun 3, 2022, 2:14 PM | Updated: Jun 5, 2022, 11:22 pm
FILE - An ethanol refinery is shown on July 22, 2021, in Chancellor, S.D. The Biden administration ...

FILE - An ethanol refinery is shown on July 22, 2021, in Chancellor, S.D. The Biden administration set new requirements Friday, June 3, 2022, that increase the amount of ethanol that must be blended into the nation's gasoline supply but reduce previous ethanol-blending requirements due to a plunge in fuel demand during the coronavirus pandemic. (AP Photo/Stephen Groves, File)

(AP Photo/Stephen Groves, File)

DES MOINES, Iowa (AP) — The Biden administration on Friday set new requirements that increase the amount of ethanol that must be blended into the nation’s gasoline supply but reduce previous ethanol-blending requirements due to a plunge in fuel demand during the coronavirus pandemic.

The Environmental Protection Agency said it would set the 2022 levels for corn-based ethanol blended into gasoline at 15 billion gallons. But even as the new rules increased future ethanol requirements, the EPA retroactively reduced levels for 2020 by 2.5 billion gallons and by 1.2 billion gallons for 2021, reflecting the lower amount of ethanol produced and decreased sales of gasoline during a period when the virus led to a drop in driving.

Most gasoline sold in the U.S. contains 10% ethanol, and the fuel has become a key part of the economy in many Midwest states. The fuel consumes more than 40% of the nation’s corn supply, and ethanol and other biofuel production plants offer jobs in rural areas that have seen steady population declines over the decades.

President Joe Biden is among many politicians from both parties who have frequently promised to support increases in the renewable fuel standard.

“Today’s actions will help to reduce our reliance on oil and put the RFS program back on track after years of challenges and mismanagement,” said EPA Administrator Michael Regan.

The Renewable Fuels Association, an ethanol lobbying group, criticized the retroactive reduction of biofuels targets but said the future requirements would bring certainty back to the renewable fuel standard, help lower gas prices and set a foundation for future growth.

In the last few days, wholesale ethanol prices have been as much as $1.30 per gallon lower than gasoline, the group said.

The final order also denies exemptions for certain oil refineries from ethanol requirements, saying they had failed to show exemptions were justified under the Clean Air Act.

The American Fuel & Petrochemical Manufacturers group, which represents refineries, called the 2022 figure “bewildering and contrary to the administration’s claims to be doing everything in their power to provide relief to consumers.” The group said unachievable mandates will increase fuel production costs and keep consumer prices high.

The Biden administration also announced Friday that the U.S. Department of Agriculture would provide $700 million to support 195 biofuel producers in 25 states that faced unexpected market losses due to the COVID-19 pandemic.

The money comes from the Coronavirus Aid, Relief, and Economic Security Act.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Lina Khan, nominee for Commissioner of the Federal Trade Commission, speaks during a Senate ...
Associated Press

Ruling could dampen government efforts to rein in Big Tech

The Supreme Court’s latest climate change ruling could dampen efforts by federal agencies to rein in the tech industry, which went largely unregulated for decades as the government tried to catch up to changes wrought by the internet. In the 6-3 decision that was narrowly tailored to the Environmental Protection Agency, the court ruled Thursday […]
5 hours ago
In this photo provided by the Luhansk region military administration, damaged residential buildings...
Associated Press

Russia claims capture of pivotal city in eastern Ukraine

KYIV, Ukraine (AP) — Russia’s defense minister said Russian forces took control Sunday of the last major Ukrainian-held city in Ukraine’s Luhansk province, bringing Moscow closer to its stated goal of seizing all of Ukraine’s Donbas region. Defense Minister Sergei Shoigu told President Vladimir Putin that Russia’s troops together with members of a local separatist […]
5 hours ago
Associated Press

North Texas shooter kills 2, wounds 3 cops, takes own life

HALTOM CITY, Texas (AP) — A gunman killed two people and wounded four others, including three police officers, before taking his own life Saturday evening in the Dallas-Fort Worth area, police said. Haltom City Police Det. Matt Spillane said early Sunday that all of those wounded in the shooting in a residential neighborhood had non-life […]
1 day ago
FILE - In this Saturday, Oct. 1, 2011 file photo, Associated Press Special Regional Correspondent f...
Associated Press

Hope and despair: Kathy Gannon on 35 years in Afghanistan

KABUL, Afghanistan (AP) — The Afghan policeman opened fire on us with his AK-47, emptying 26 bullets into the back of the car. Seven slammed into me, and at least as many into my colleague, Associated Press photographer Anja Niedringhaus. She died at my side. Anja weighed heavy against my shoulder. I tried to look […]
1 day ago
FILE - In this Monday, Nov. 18, 2019 file photo, the logo of Google is displayed on a carpet at the...
Associated Press

Google to erase more location info as abortion bans expand

Google will automatically purge information about users who visit abortion clinics or other places that could trigger legal problems now that the U.S. Supreme Court has opened the door for states to ban the termination of pregnancies.
1 day ago
FILE - President Joe Biden, center, meets with South Korea's President Yoon Suk Yeol, left, and Jap...
Associated Press

North Korea slams US-South Korea-Japan military cooperation

SEOUL, South Korea (AP) — North Korea on Sunday slammed the United States, South Korea and Japan for pushing to boost their trilateral military cooperation targeting the North, warning that the move is prompting urgent calls for the country to reinforce its military capability. North Korea has long cited what it calls hostility by the […]
1 day ago

Sponsored Articles

...
Dr. Richard Carmona

Great news: Children under 5 can now get COVID-19 vaccine

After more than two years of battle with an invisible killer, we can now vaccinate the youngest among us against COVID-19. This is great news.
...
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
...
CANVAS ANNUITY

Best retirement savings rates hit 4.30%

Maximize your retirement savings with guaranteed fixed rates up to 4.30%. Did you know there is a financial product that can give you great interest rates as you build your retirement savings and provide you with a paycheck for life once you retire? It might sound too good to be true but it is not; this product is called an annuity.
EPA raises amount of ethanol that must be blended with gas