Obama proposes reducing ethanol
WASHINGTON (AP) — The Obama administration on Friday proposed to reduce the amount of ethanol in the nation’s fuel supply for the first time, acknowledging that the biofuel law championed by both parties in 2007 is not working as well as expected.
While the proposal highlights the government’s struggle to ramp up production of homegrown biofuels that are cleaner-burning than gasoline, it is unlikely to mean much for consumers at the pump.
The change would reduce by almost 3 billion gallons the amounts of ethanol and other biofuels blended into gas in 2014 than the law requires.
The 2007 law tried to address global warming, reduce dependence on foreign oil and prop up the rural economy by requiring oil companies to blend billions of gallons of biofuels into their gasoline each year. But politicians who wrote the law didn’t anticipate fuel economy to improve as much as it has in recent years, which reduced demand.