Reuters, 28 February – Based on a request from the governors of those states, the Biden administration is anticipated to recommend for approval on Wednesday a rule that would allow wider sales of gasoline with a higher ethanol blend in some U.S. Midwest states.
According to the sources, the authorized rulemaking is not anticipated to go into force until the summer of 2024.
The rule would be a success for the ethanol sector, which has wanted for years to expand sales of so-called E15, which includes 15% ethanol, and for the farm business, as ethanol is made from maize.
According to sources, the US Environmental Protection Agency is anticipated to request a public comment period on the regulation.
Governors of states that produce a significant amount of maize in the Midwest, such as Illinois, Iowa, and Nebraska, asked the EPA to essentially abolish the prohibition in their states in April.
Michael Regan, administrator of the United States Environmental Protection Agency, declared in September that the organization intended to respond to the request before next summer.
A request for comment was not answered by the White House or the EPA.
The governors claim that increasing the supply of E15 would lower pump costs and benefit farmers, but opponents of the plan, especially those in the refining sector, have expressed worries that a piecemeal strategy for increasing E15 sales could pose problems with distribution.
The oil refining industry has traditionally balked at efforts to expand the ethanol market because it competes against gasoline at the pump and can be costly to blend.
The EPA enforces a summertime ban on E15 over concerns it contributes to smog in hot weather, though research has since shown E15 blend may not increase smog relative to the more common E10 sold year-round. E10 contains 10% ethanol.