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Home / Business

US proposes reducing biofuel mandate

AP
15 Nov, 2013 07:15 PMQuick Read

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WASHINGTON (AP) The Obama administration wants to reduce the amount of ethanol in the U.S. fuel supply, acknowledging the biofuel law championed by both political parties in 2007 is not working as well as expected.

The new proposal announced Friday is unlikely to mean much for consumers at the pump. It could, however, cut into farmers' profits for corn, the primary ethanol source.

The change would require almost 3 billion FEWER gallons (11.3 billion liters) of biofuel to be blended into gasoline in 2014 than the law mandates.

Since 2007, people are driving less and fuel economy has improved. Meanwhile, next-generation biofuels have not taken off as expected.

Under current plans, the amount of biofuel required would generate more ethanol than many engines can safely handle.

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The oil industry lobbied hard for the reduction.

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