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US Boosts Biofuel Quotas as Gasoline Prices Surge

  • EPA requires 20.63 billion gallons of renewable fuel this year
  • Gas and food prices weighed on administration’s deliberations
A tanker truck sits outside an ethanol biorefinery in Gowrie, Iowa.

A tanker truck sits outside an ethanol biorefinery in Gowrie, Iowa.

Photographer: Daniel Acker/Bloomberg
Updated on

The US is ordering refiners to boost the use of biofuels such as corn-based ethanol, as the Biden administration tries to strike a balance between competing political and economic pressures while gasoline prices soar. 

The US Environmental Protection Agency is requiring refiners to mix 20.63 billion gallons of renewable fuels into gasoline and diesel this year -- a 9.5% increase over last year’s target. In a final rule posted online Friday, the agency also said it was retroactively paring the 2020 biofuel-blending quota to 17.13 billion gallons and setting the overall 2021 target at 18.84 billion gallons to reflect actual consumption.