The U.S. Environmental Protection Agency on Wednesday proposed a rule that would allow sales of gasoline with a higher ethanol blend in certain U.S. Midwest states - a win for corn growers but a potential logistical challenge for the oil industry.
Proponents of the EPA's proposal say that increased E15 supply would lower pump prices by expanding the volume of available fuel, and help farmers in the meantime.
The API expects an additional one or two years beyond 2024 will be needed to minimize impacts to consumers, said Will Hupman, API's vice president of downstream policy. The rule could cost the Midwest's fuel supply chain and consumers $500-$800 million per year, Kelly added.The Renewable Fuels Association said it was glad to see the EPA taking action, but disappointed that it was a year later than the governors had requested.
U.S. President Joe Biden lifted the ban last summer to try to lower historically-high gasoline prices.Some in the oil industry are so opposed to a piecemeal approach to E15, that in November they supported for the first time a bill to expand nationwide sales of E15.
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