Expanded Ethanol Sales Could Be On Tap for Summer

The U.S. Environmental Protection Agency on Monday sent a draft of its proposed rule allowing year-round sales of higher ethanol blends of gasoline to the White House Office of Budget for review.

The rule expanding sales of so-called E15 was promised by President Trump last year as a way to help corn farmers but includes measures sought by the oil industry to curb biofuel credit market speculation.

“We hope to expeditiously propose and finalize the rule consistent with the President’s direction,” EPA spokesman Mike Abboud said.

Following the interagency process, the proposed rule will be published and put out for public comment before being finalized. Congressional approval is not required.

The process needs to be completed before June 1 to allow for gasoline with a higher blend of ethanol, also known as E15, to be available for summer sales when driving demand picks up.

E15 gasoline contains 15 percent ethanol, versus the 10 percent found in most U.S. gasoline. The ban over the year-round sales of the fuel had been imposed over concerns that E15 contributes to smog in hot weather.

The EPA had planned to release the draft rule in February but was delayed by the partial federal government shutdown.

Source: Reuters