Suspending ethanol rule good news for motorists and Midwest
Last month more than 1,000 farmers, workers in the ethanol industry and other biofuel supporters sent a letter to President Joe Biden urging him to allow broader use of lower-cost ethanol blends like E-15. The letter stated that ethanol is the solution to record-high gas prices.
Apparently, Biden got the message. He flew to Iowa on Tuesday and announced his administration will suspend a federal rule that bars higher levels of ethanol in gasoline during the summer. The decision was hailed by many in the Midwest, including U.S. Sen. Amy Klobuchar, D-Minn. Klobuchar has been a strong advocate for permitting the year-round sale of E15 and increasing the use of biofuels.
“I have long pushed to make E15 available year-round and have introduced bipartisan legislation to do just that,” Klobuchar said in a release on Tuesday. “Investing in affordable, readily-available biofuels produced in the U.S. will benefit our economy, decrease prices at the pump, and reduce our dependence on foreign oil. I am glad to see the administration take this initial step to diversify our fuel supply in an affordable way, and I will continue to push for more permanent solutions.”
And that’s the issue. Suspending the federal rule will help, but it’s probably not a long-term solution.
Senior Biden administration officials said the action will save drivers an average of 10 cents per gallon based on current prices, but at just 2,300 gas stations out of the nation’s more than 100,000. The affected stations are mostly in the Midwest and the South, including Texas, according to industry groups.
The rule waiver comes on the heels of the Biden Administration also releasing oil from U.S. reserves.
Again, that move will probably temporarily lower gas prices slightly.
So what more can the Biden Administration do in the short term to lower gas prices?
Not much, but here in the corn-growing Midwest, we appreciate the ethanol summer waiver. Like Klobuchar said, it will “benefit our economy” here in the Midwest.