The U.S. Environmental Protection Agency (EPA) is expected to announce plans by Friday to temporarily expand sales of higher-ethanol blends of gasoline during the summer, a move that is poised to benefit the corn ethanol industry and likely increase demand. According to three sources familiar with the matter, the measure will extend the period for purchasing E15, a gasoline utilizing a 15% ethanol blend, from June 1 to Sept. 15.
While the addition of ethanol to gasoline is known to contribute to smog pollution in hot weather, research has indicated minimal differences between E15 and the more widely available E10 blends.
The EPA has not provided a response to requests for comment on this development. The announcement follows advocacy from lawmakers, including Senator John Thune from South Dakota and Senator Dick Durbin from Illinois, who highlighted the potential for expanded E15 sales to enhance energy security amid unrest in Ukraine and the Middle East in a letter to President Joe Biden.
In recent years, the Biden administration has permitted temporary summertime sales of E15 as part of efforts to mitigate gasoline prices. These decisions have been welcomed by the Farm Belt, a significant constituency ahead of the upcoming presidential election.
The Corn Lobby has long pursued the expansion of year-round sales of E15, culminating in February when the administration approved a request from Midwestern governors to enable summertime sales of E15 in their states, commencing in 2025.