The U.S. Environmental Protection Agency (EPA) on March 1 proposed a rule that in certain U.S. Midwest states, it would allow sales of gasoline with a higher ethanol blend — a win for corn growers but a potential logistical challenge for the oil industry, according to Reuters.
The proposal comes in response to a request from the governors of states, including Iowa, Nebraska and Illinois, that the agency lifts an effective ban on E15, or fuel containing 15% ethanol, to lower pump prices and help farmers.
The EPA’s proposal would take effect in the summer of 2024, a year later than the governors had requested.
The EPA enforced summertime regulations preventing E15 sales because of concerns it contributes to smog in hot weather. Research has shown, however, that E15 may not increase pollution more than E10, which is sold year-round and contains 10% ethanol.
Proponents of the EPA’s proposal said that increased E15 supply would lower pump prices by expanding the volume of available fuel and help farmers in the meantime.
However, critics of the idea — including those in the refining industry — have voiced concerns that a piecemeal approach to augmenting E15 sales could lead to distribution challenges.
Both the biofuel and oil industries have said they would prefer a nationwide policy allowing E15. The EPA will hold a public hearing for the proposed rule in late March or early April 2023.
