Gasoline with higher blends of ethanol could be sold year-round in 8 Midwestern states beginning next year under a new rule proposed by the EPA, the Environmental Protection Agency.
The 8 states that would be allowed to sell gasoline with 15% ethanol during the summer months include Nebraska and South Dakota. All are currently limit to 10% ethanol during the summer.
The proposed rule is a victory for the biofuels industry, which for years has pushed to allow sales of E-15 gasoline during the summer – currently banned by concerns that it would worsen smog during hot weather.
The industry and members of Congress welcomed the EPA’s proposal, which had been requested by governors in the 8 states, who happen to grow the bulk of the nation’s corn – nearly 40% of which is used to produce ethanol.
They say as more ethanol goes into gas tanks, demand for corn should increase and prices for the commodity paid to farmers should also rise.
The American Coalition for Ethanol says it appreciates the EPA proposal but argues there’s no reason to wait until next year to start it. The industry group accuses the agency of delaying action because of pressure from the petroleum industry.
The EPA and the American Fuel & Petrochemical Manufacturers industry group both say there’s not enough time to change the fuel supply for this summer.
They say fuel production and distribution for this summer has already begun making the transition to a new lower volatility fuel to meet a May 1st standard at gasoline terminals, adding that adding another change could lead to supply disruptions.