The federal mandate for 36 billion gallons of biofuels by 2022 will reduce imported oil and petroleum products by 9.5% and save the U.S. $41.5 billion, according to the Environmental Protection Agency's regulatory impact analysis. However, the cost of biofuel subsidies, such as the 45-cents-per-gallon ethanol credit, will reduce the expected savings from fewer oil imports. The likelihood of importing biofuels to meet the federal mandate would also cut into the estimated savings, the report added.

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