The Biden administration is likely to raise ethanol blending mandates for 2021 above the figure it proposed in December to align with actual U.S. consumption levels, according to two sources briefed on the decision.
In December, the U.S. Environmental Protection Agency proposed that refiners blend 13.32 billion gallons of ethanol into the fuel pool, a move that angered farm-belt lawmakers and the industry who said it was too low.
The meeting underscores the political implications of the upcoming decision, which will impact fuel and food prices amid a 40-year high in inflation rates. In recent weeks, merchant refiners and unions went on an advertising blitz in Washington, Delaware and Philadelphia markets calling on the Biden administration to lower volumes in the final rule, arguing that the program threatens refineries and well-paying jobs.
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