Trump Calls for Year-Round Sale of High-Ethanol Gas

Republican senators say President Trump will allow year-round sales of renewable fuel with blends of 15 percent ethanol as part of an emerging deal on the federal ethanol mandate.

The Environmental Protection Agency currently bans the 15-percent blend, called E15, during the summer over concerns that it contributes to smog on hot days. Gasoline typically contains 10 percent ethanol. Farm-state lawmakers have pushed for greater sales of the higher ethanol blend to boost demand for the corn-based fuel.

Sen. Charles Grassley (R-IA) is calling the proposed deal good news for farmers and drivers alike. Grassley also said the president has agreed to not pursue a cap on RIN credits that refiners purchase if they don’t blend enough biofuel into gasoline.

Such a cap would have “destroyed demand for biofuels and hurt biofuels workers,” Grassley said.

However, the president could decide to attach RIN credit onto U.S. fuel exports, which would have “a crippling impact on American agriculture—significantly reducing demand for ethanol and corn,” according to Growth Energy, which represents ethanol producers and supporters.

Source: Des Moines Register