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U.S. to Lift Restrictions on Ethanol Fuel

  • President Donald Trump speaks to reporters upon arrival at White House in Washington, Monday, Oct. 8, 2018, from a trip to Orlando, Fla. (AP Photo/Manuel Balce Ceneta)

  • Senate Judiciary Committee Chairman Sen. Chuck Grassley, R-Iowa, speaks about the FBI investigation of Supreme Court nominee Brett Kavanaugh, Thursday, Oct. 4, 2018, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)



Associated Press
Wednesday, October 10, 2018

Washington — The Trump administration is moving to allow year-round sales of gasoline with higher blends of ethanol, a boon for Iowa and other farm states that have pushed for greater sales of the corn-based fuel.

President Donald Trump announced he is lifting a federal ban on summer sales of high-ethanol blends during a trip to Iowa on Tuesday.

“Today we are unleashing the power of E15 to fuel our country all year long,” Trump said at a campaign rally, referring to gasoline blends with up to 15 percent ethanol.

At the White House earlier on Tuesday, Trump said: “It’s an amazing substance. You look at the Indy cars. They run 100 percent on ethanol.”

He said he wants more energy production and to help farmers and refiners.

“I want more because I don’t like $74,” Trump said, referring to the current price of a barrel of crude oil. “If I have to do more — whether it’s through ethanol or another means — that’s what I want. I want low prices.”

The long-expected announcement is something of a reward to Iowa Sen. Chuck Grassley, who as Senate Judiciary Committee chairman led a contentious but successful fight to confirm Brett Kavanaugh to the Supreme Court. The veteran Republican lawmaker is the Senate’s leading ethanol proponent and sharply criticized the Trump administration’s proposed rollback in ethanol volumes earlier this year.

Grassley called the proposal “a very good victory for agriculture,” ethanol workers and the environment. “Everything about this is good, good, good,” Grassley said on Tuesday after he and Sen. Joni Ernst, R-Iowa, met with Trump at the White House.

The White House said the Environmental Protection Agency will publish a rule to allow high-ethanol blends as part of a package of proposed changes to the ethanol mandate.

Gasoline typically contains 10 percent ethanol. The EPA currently bans the high-ethanol blend, called E15, during the summer because of concerns that it contributes to smog on hot days, a claim ethanol industry advocates say is unfounded.

In May, Republican senators, including Grassley, announced a tentative agreement with the White House to allow year-round E15 sales, but the EPA did not propose a formal rule change.

The White House said the proposed rule intends to allow E15 sales next summer.

Current regulations prevent retailers in much of the country from offering E15 from June 1 to Sept. 15.

Lifting the summer ban is expected to be coupled with new restrictions on trading biofuel credits that underpin the federal Renewable Fuel Standard, commonly known as the ethanol mandate. The law sets out how much corn-based ethanol and other renewable fuels refiners must blend into gasoline each year.

The Renewable Fuel Standard was intended to address global warming, reduce dependence on foreign oil and bolster the rural economy by requiring a steady increase in renewable fuels over time.

The mandate has not worked as intended, and production levels of renewable fuels, mostly ethanol, routinely fail to reach minimum thresholds set in law.

The oil industry opposes year-round sales of E15, warning that high-ethanol gasoline can damage engines and fuel systems of older cars and motorcycles. Some carmakers have warned against high-ethanol blends, though EPA has approved use of E15 in all light-duty vehicles built since 2001.

A bipartisan group of lawmakers, many from oil-producing states, sent Trump a letter last week opposing expanded sales of high-ethanol gas. The lawmakers called the approach “misguided” and said it would do nothing to protect refinery jobs and “could hurt millions of consumers whose vehicles and equipment are not compatible with higher-ethanol blended gasoline.”

The letter was signed by 16 Republicans and four Democrats, including Texas Sen. John Cornyn, the No. 2 Republican in the Senate, and Sen. John Barrasso, R-Wyo., chairman of the Senate Environment Committee.