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Biden Administration Caught Between Biofuels And Ethanol

A 45-cent-per-gallon government subsidy for ethanol producers ended earlier this year, but there's still a mandate that forces refineries to blend ethanol with gasoline. Before the mandate, refineries used about half as much ethanol as they do today.
Mark Wilson
/
Getty Images
A 45-cent-per-gallon government subsidy for ethanol producers ended earlier this year, but there's still a mandate that forces refineries to blend ethanol with gasoline. Before the mandate, refineries used about half as much ethanol as they do today.

The Biden administration has increased the amount of biofuels that must be blended into the nation’s fuel supplies over the next three years, but held production totals steady for corn-based ethanol, disappointing the biofuel industry and farm advocates. Michael Regan, administrator of the Environmental Protection Agency, said the final rule would reduce U.S. reliance on oil and support continued growth of biofuels that help combat global warming. The plan represents a decline from a proposal announced last year and drew immediate criticism from the biofuels industry. Environmental groups also were disappointed, saying EPA’s continued push for ethanol and other biofuels push will hamper U.S. climate efforts rather than bolster them.