Year-Round E15: A Recipe for Higher Gas Prices and Economic Distress
The US Congress is pushing to make E15 fuel blends available year-round, claiming it will save Americans money. However, this move has unintended consequences that could harm consumers and small refiners.
The biofuel industry already receives tens of billions in taxpayer funds each decade, with the latest expansion expected to cost $53.1 billion over the next 10 years. This includes subsidies for crop insurance, loan guarantees, grants, and commodity programs.
The Renewable Fuel Standard (RFS) requires a set volume of biofuels to be mixed into conventional gasoline, creating a guaranteed market for corn ethanol. However, this has raised gas prices by approximately 30 cents per gallon due to compliance costs.
Small refineries in Pennsylvania are particularly at risk, as the proposed legislation reduces their exemption from blending requirements and redefines 'small refiner' to include subsidiaries of larger parent companies.