WASHINGTON (Reuters) - The U.S. Environmental Protection Agency said on Tuesday it does not see the need to waive the federal law that requires the United States to blend 12.95 billion gallons of ethanol and other biofuels into gasoline during 2010.
“We are not aware of the need to waive any other volume mandates for 2010,” the EPA said.
The agency also said the renewable fuels mandate would “significantly impact the cost of gasoline and diesel” during the next decade. Under the mandate, EPA estimated that the U.S. gasoline prices would rise 10.9 cents a gallon by 2022, if crude oil cost $53 a barrel.
Climbing to 36 billion gallons in 2022, the biofuel mandate will displace 11 percent of gasoline and diesel consumption annually, the EPA said.
Reporting by Tom Doggett and Ayesha Rascoe; Editing by Lisa Shumaker