Feb 12, 2021 3:56 PM

Governor’s biofuels coalition asks President Biden to support biofuels sector

Posted Feb 12, 2021 3:56 PM

The Governors' Biofuels Coalition is calling on President Joe Biden to ensure the future of the biofuels sector.  The coalition includes governors from 22 states throughout the U.S., including Minnesota Governor Tim Walz, who led this week's action in a letter to President Biden.

Walz states, "the once flourishing industry is now in jeopardy, threatened by trade wars, a litigious petroleum industry, and shrinking demand caused by the pandemic.” The letter noted that technological advances will significantly benefit the nation overall, but could have a devastating impact on the ethanol industry.

The governor proposed two administrative actions to ease that transition, including an executive order banning the use of aromatics in gasoline, and adopting new Renewable Fuel Standard regulations.

The letter says banning aromatics use would allow for the substitution of cleaner octane additives for aromatics, expanding the market for ethanol. Regarding the RFS, Walz cautioned that its regulations, particularly the waiver provision, have been manipulated and distorted “to keep the RFS from meeting its full potential.”