Trump Administration Allows Temporary Sales of Summertime Higher-Ethanol Fuel

By Stephanie Kelly

NEW YORK, April 28 (Reuters) – The Trump administration on Monday issued an emergency waiver to allow the sale of a higher-ethanol gasoline blend to be sold this summer nationwide, saying it will add to fuel supply during the peak U.S. driving season and bring down costs.

The move likely will benefit biofuel producers and corn farmers, as it is expected to expand the market for their products. Both industries have pushed for nationwide year-round sales of the higher-ethanol blend, which is called E15, as it is made up of 15% ethanol.

“This move to allow the summer sale of E15 will provide immediate relief to consumers, provide more choices at the pump, and drive demand for corn grown, processed, and used right here in America,” U.S. Secretary of Agriculture Brooke Rollins said.

The government currently restricts sales of E15 gasoline in summer months due to environmental concerns over smog, which the biofuel industry says are unfounded.

The emergency waiver will go into effect on May 1. The Environmental Protection Agency, which issued the waiver, said it expects to extend the waiver until it no longer deems it necessary. The EPA has issued similar waivers for the summer in recent years.

“With geopolitical conflict roiling energy markets worldwide, we applaud President Trump and Administrator (Lee) Zeldin for acting quickly to combat potential fuel shortages and help keep a lid on gas prices this summer,” said Geoff Cooper, president of the Renewable Fuels Association, a biofuels trade group.

Earlier this year, the EPA said it would uphold an April 28 implementation date for a request from governors in Midwestern states to allow year-round sales of E15.

In Monday’s action, the EPA said it waived provisions that would have otherwise made E10 gasoline sold in the states of Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota, and Wisconsin meet a more stringent standard than conventional gasoline in other areas of the country.

(Reporting by Stephanie Kelly; Editing by Alistair Bell)