Donnelly Urges President Trump To Take Steps To Lower Gas Prices

(WBIW) Following reports that gas prices are on the rise, U.S. Senator Joe Donnelly today urged President Trump to take an important step towards addressing the price surge by reducing regulatory burdens around the blending of biofuels. Current regulations on Reid Vapor Pressure (RVP) prevent most retailers from selling American-made fuels like E15 during the summer months, driving up the cost to consumers at the pump.

Donnelly said, in part, in his letter, "I am writing today out of significant concern for rising gas prices and their impact on families and businesses in Indiana. When Hoosier families and businesses have to spend more to fill-up their gas tanks to commute to work or to make the day's deliveries, it strains our local communities and economies...One step that would help mitigate the circumstances causing an increase in gas prices would be to lift the current restrictions on the year-round sale of fuels containing higher blends of biofuels...I ask that you commit to working to remove the problems with this regulation."

In March 2017, Donnelly, along with Agriculture Committee members Senator Deb Fischer (R-NE) and Chuck Grassley (R-IA) introduced the Consumer and Fuel Retailer Choice Act. The bill would extend the Reid vapor pressure (RVP) waiver to ethanol blends above 10 percent. This would increase market access opportunities for higher blends of ethanol. It would allow retailers across the country to sell E15 and other higher-ethanol/gasoline fuel blends year-round, increasing regulatory certainty and eliminating confusion at the pump. READ MORE

Excerpt from Energy.AgWired.com: The Renewable Fuels Association (RFA) recently did an analysis of how ethanol is already helping keep gas prices lower than they would be otherwise. READ MORE

Excerpt from Renewable Fuels Association: More than 37 million Americans are expected to travel by car this holiday weekend. Drivers are expected to pay nearly $3 per gallon on average, the highest gasoline prices in four years. However, according to a recent Renewable Fuels Association analysis, ethanol is already helping to offset higher prices, and 10% ethanol blends alone will save consumers at least $39 billion this year. The savings would be even greater if consumers across the country could use E15 (15% ethanol, 85% gasoline) this summer and throughout the year.

So how much savings is associated with E15? Quite a lot. According to the RFA analysis, consumers who are blocked from accessing E15 are spending at least an extra 7 cents per gallon on gasoline, translating into $6 billion, or approximately $80 per household on a national basis. That really adds up, especially when gasoline prices are already at four-year highs.

The consumer savings would be even greater if E15 were used nationwide in approved vehicles in place of E10, the analysis found. Specifically, the savings would be at least 34 cents per gallon compared to ethanol-free gasoline, or 17%, for E15 consumers. Using E15 in approved vehicles would help consumers across the country save approximately $45 billion on gasoline, or $386 per household. READ MORE