The ethanol industry says President Biden’s announcement in Iowa that his administration will restore summertime sales of E15 this summer should help ease soaring gas prices.
Biden made the announcement at an Iowa ethanol plant, as annual inflation jumped 8.5 percent, 43 percent for gas, alone—made worse by the ban on Russian oil.
Ethanol groups had pressed the White House for months to restore summertime E15 sales, halted by an oil industry lawsuit, to ease gas prices. Renewable Fuels Association chief Geoff Cooper.
“Ethanol is cheaper than gasoline today at the wholesale level, it’s been selling for 70 to 80-cents per gallon less than gasoline in recent weeks, and so commonsense tells you that when you add more of a lower cost fuel, the resulting cost of the finished fuel for the consumer, is going to be reduced.”
It was estimated even before the runup in gas prices, nationwide access to E15 could save drivers more than 12-billion annually in fuel costs. Cooper; “That $12 billion number is based on an assumption that E15 is going to replace E10 universally in the marketplace. We know that’s not going to happen overnight, that’s not going to happen this summer…but what we do know is that for drivers that are buying E15 today, they are getting a 25 or 30-cent per gallon discount in many cases.”
2,600 gas stations across 31 states now sell E15, approved for 96-percent of light-duty vehicles.
Cooper talks about chances for extending the Biden emergency summertime waiver. “The White House today, in this announcement, hints at the fact that they are interacting with a group of states, primarily Midwest states, on a long-term permanent solution that hopefully, will be in place before summer 2023, and would obviate the need for any sort of emergency waivers, at that point.”
Biden also announced his administration will soon disburse long-awaited COVID-19 emergency relief funding to renewable fuel producers and increase investments in low-carbon sustainable aviation technologies.
Farm and Ranch Director Jesse Allen heard comments as well from Growth Energy CEO Emily Skor, after the Biden announcement, and you can hear what she had to say below: