The U.S. Environmental Protection Agency (EPA) has announced plans to temporarily extend sales of higher-ethanol gasoline blends this summer, aiming to mitigate potential supply disruptions amidst ongoing conflicts in Ukraine and the Middle East. This decision, reported exclusively by Reuters ahead of its official announcement, represents the third consecutive year of prolonging the availability of E15, a gasoline blend containing 15% ethanol. Despite concerns about increased smog pollution in warmer weather due to ethanol additives, research suggests minimal disparities between E15 and the more prevalent E10 blends. EPA Administrator Michael Regan emphasized that this move is deemed to be in the public interest, with no significant projected impact on air pollution. The decision has garnered support from the Farm Belt, an influential constituency, anticipating heightened demand for their products, while lawmakers like Senator John Thune and Senator Dick Durbin have endorsed the expansion, citing its potential contribution to energy security.

Renewed on May 1st and set to last for 20 days initially, the waiver allowing expanded E15 sales is intended to persist until deemed unnecessary by the administration. This move follows earlier approvals, including one in February responding to Midwestern governors’ requests for summertime E15 sales beginning in 2025. The corn industry has long advocated for year-round E15 sales, with ongoing efforts aimed at a nationwide and permanent expansion. Renewable Fuels Association President Geoff Cooper praised President Biden and EPA Administrator Regan for their proactive measures in addressing potential fuel shortages and mitigating rising gas prices. With geopolitical tensions impacting global energy markets, the temporary expansion of E15 sales emerges as a strategic response to maintain stability in the fuel supply chain, highlighting the intersection of economic, environmental, and political considerations shaping energy policy in the United States.

Sources:

https://www.reuters.com/business/energy/us-epa-allows-temporary-expansion-higher-ethanol-gasoline-blend-this-summer-2024-04-19/