Thursday, June 8, 2023
HomeAg NewsSTUDY: Permanent Year-Round E-15 will Provide Big Boost to the U.S. Economy

STUDY: Permanent Year-Round E-15 will Provide Big Boost to the U.S. Economy

A new study from Growth Energy shows that a transition to nationwide E15 could save drivers billions in fuel costs, create jobs, and return billions to the economy. Emily Skor is CEO of Growth Energy, and she says President Biden’s 2022 waiver allowing E15 use in the summer is a good example of the biofuel’s benefits.

“When the President responded to surging fuel prices with a temporary E15 waiver, he estimated it would save working families up to 10 cents per gallon. Some tried to downplay those savings, but data shows that President Biden was right to approve E15. In fact, the discount turned out to be 60 percent higher than the White House expected, about 16 cents per gallon, on average. Of course, that savings surged to nearly $1 per gallon in some places. When it comes to energy security, higher ethanol blends are a proven shield against skyrocketing fuel prices. And that’s why we’re working so hard to make sure American families don’t lose access to E15 in the summers to come.”

A new report shows a lot of economic benefits if the temporary E15 waiver for year-round sales was permanent and E15 was adopted as a nationwide fuel.

“The ethanol supply chain starts and stops on U.S. soil, so any increase in ethanol demand means more American jobs, more wages, more investment, more tax revenue, and other benefits. It’s also based on the latest economic data, including elevated oil prices and the higher costs of inputs for renewable energy production. What we found was that a nationwide transition to E15 would save consumers $20.6 billion in annual fuel costs, put an additional $36.3 billion in income into the pockets of American households, support an additional 188,000 jobs, and add $66.3 billion to the U.S. GDP. In short, E15 can provide a much-needed boost to the farm economy and even greater savings to American families.”

Skor talks about what policymakers should be doing to make sure E15 doesn’t disappear next summer.

“EPA has the power to act on this, but there are also several bills in Congress that would make a year-round E15 permanent, and we’re fortunate to have a robust group of bipartisan legislators who are committed to codifying year-round E15. In the meantime, we’re also working with USDA to expand access. For example, the U.S. Department of Agriculture Secretary Tom Vilsack recently announced new infrastructure grants to support sales of higher biofuel blends, and a Growth Energy Market Development Team is working hand-in-hand with our retail partners to help them take full advantage of the opportunity. With this summer spike in fuel costs and the conflict in Ukraine, more and more policymakers have come to recognize that biofuels are the single best tool available to drive down prices at the pump, provide greater energy independence, and help us reach a climate ambition.”

- Advertisment -

Most Popular

Recent Comments