Posted by 04 October 2019
Today the Trump Administration took steps to shore up support among corn farmers – it announced a package of changes to the federal biofuels mandate that will increase the use of ethanol.
Under the new rules announced today, the Environmental Protection Agency will require that oil refiners use a higher mix of biofuels. By next year this will require 15 billion more galls of biofuels to be used than the law creating the renewable fuel standard mandated.
During the administration of George W. Bush, Congress passed legislation creating a mandate that refiners must use a certain amount of biofuel. This is known as the renewable fuel standard, and is an area of contention between farmers and refiners and others who oppose ethanol.
Farmers support a stricter biofuel mandate because it leads to a larger market for corn. Refiners oppose it because they are forced to mix biofuel with traditional petroleum fuel, a practice they claim causes economic losses. Many consumer groups also oppose the use of biofuel like ethanol, arguing that it ruins engines and leads to lower fuel mileage.
The Trump Administration has generally been friendly towards the ethanol industry. Earlier this year it relaxed restrictions on the sale of fuel that contains a blend of 15% ethanol, or E15. That level of ethanol in the fuel represents an increase from the 10% ethanol fuel blends being sold.
Many farmers have been upset with the Trump Administration’s trade war, which has led to a loss of markets for some of their crops. They praised this move on biofuels as a way to help boost the farm economy. The petroleum industry blasted it, however, saying that it will lead to a loss of jobs in refineries.
Do you support the government mandating the use of more ethanol and biofuels?