Biden Unveils Plans to Tap Homegrown Biofuels to Mitigate Rising Oil Prices

US President Joe Biden is set to reveal on Tuesday a new strategy that will allow local biofuels to offset the negative effects of rising oil prices caused by Russia’s war in Ukraine.

According to the fact sheet released by the White House, the Biden administration wants to support the development of homegrown biofuels to provide affordable fuel options in the short term and to build energy independence in the long run by reducing dependency on fossil fuels.

The US Department of Agriculture’s (USDA) new biofuel producer program will provide up to $700 million in support.

Apart from this amount, the USDA also announced $100 million in new funding for grants for biofuels infrastructure. 

“The funding will provide grants to refueling and distribution facilities for the cost of installation, retrofitting, or otherwise upgrading of infrastructure required at a location to ensure the environmentally safe availability of fuel containing ethanol blends of E15 and greater or fuel containing biodiesel blends B-20 and greater,” the White House said. 

The USDA will also provide cash to boost biofuels for railways as a means of improving supply chains and lowering consumer goods and transportation costs.

The White House also confirmed that the US Environmental Protection Agency (EPA) will issue an emergency waiver this summer to allow the sale of E15 gasoline, which contains 15% ethanol to give consumers more choice to get lower prices and provide savings to many families. 

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