USA – by President Joe Biden the administration announced on Friday that it would allow summer sales of gasoline with a higher ethanol blend, a win for biofuel industry and farmers want an open market for their corn.
The move is aimed at reducing consumer pump prices during the high-demand summer driving season by increasing total fuel availability and reflects the Biden administration’s continued concern about energy costs.
The waiver will temporarily exempt the 15% ethanol fuel blend from smog regulations that effectively block sales from June 1 to September 15 across the United States. Adding ethanol to gasoline is known to increase smog pollution in hot weather, but research has shown little difference between E15 and the more widely available E10 blends. The EPA said it does not expect the move to have a significant impact on emissions.
“Allowing the sale of E15s during the summer driving season will not only help increase fuel supplies, but also support American farmers, increase U.S. energy security, and provide relief to motorists across the country.” “, EPA Administrator Michael Regan said in a statement.
US gas prices at the pump averaging about $3.63 a gallon on Friday for conventional lead-free, compared with $4.14/gallon a year ago, data from American Automobile Association shows.
The EPA estimates that the average E15 is about 25 cents a gallon cheaper than the E10.
The Biden administration issued a similar waiver last year as part of a series of measures to help tackle historically high gas prices.
U.S. corn and biofuel lobbying has strongly promoted the expansion of E15 sales, arguing that ethanol sales help farmers. Trade groups including the Renewable Fuels and Growth Energy Association welcomed the news.
“The EPA’s action to allow summer use of E15 will help expand gasoline supplies, prevent fuel shortages, protect air quality and reduce carbon emissions,” said RFA President Geoff Cooper. .
After last year’s waiver, an additional 194 million gallons of E15 were sold last summer, the RFA said. It says it has saved consumers $57 million nationwide.
The refining industry has opposed expanding sales of ethanol, which is expensive to blend and competes with petroleum fuels. U.S. fuel and petrochemical producers criticized the EPA’s decision.
“The US market is well supplied with gasoline, which EIA [Energy Information Administration] AFPM President Chet Thompson said. “So we can’t wait to see how the EPA will justify this decision.”
The emergency waiver will take effect on May 1, when terminal operators can no longer sell E15s in the affected regions, and will last until May 20. is expected to extend the waiver period until the scarcity of supplies due to Russia’s invasion of Ukraine is no longer an issue.
