The Trump administration announced its decision to maintain a fuel policy change initiated under the Biden administration, aimed at increasing sales of corn-based ethanol.
Despite concerns from the oil industry regarding potential fuel cost increases and supply disruptions, the Environmental Protection Agency (EPA) is proceeding with the plan.
Maintaining the Timeline:
EPA Administrator Lee Zeldin confirmed that the agency will adhere to the existing April 28 deadline for ending the special treatment of conventional E10 gasoline. This change will eliminate the exemption from volatility limits for E10 in up to eight Midwestern states.
Regulatory Implications:
The policy adjustment places E10 under the same regulations as E15, allowing both to use the same raw gasoline blendstock, simplifying compliance for fuel producers.
Flexibility for States:
While the implementation timeline remains unchanged, EPA is open to granting one-year extensions for states requiring additional compliance time. Ohio has already requested such a delay.
EPA’s said its decision underscores its commitment to maintaining consumer access to E15 while ensuring a smooth transition for refiners and fuel suppliers. Administrator Zeldin highlighted ongoing efforts to collaborate with all stakeholders to maintain an affordable and stable fuel supply.
Possible Legislation for Year-Round E15
Meanwhile, lawmakers are exploring legislation that would permit year-round sales of E15, potentially making the EPA’s regulatory change unnecessary. However, it remains uncertain whether Congress will pass the bill in time to affect the current policy timeline.
EPA said on Friday that in the “absence of congressional action” that it is still considering issuing emergency fuel waivers to allow the year-round sale of E15.
“EPA is closely monitoring fuel market conditions and considering potential emergency fuel waivers under the Clean Air Act to prevent supply disruptions and protect consumers from price volatility,” EPA said in a statement.
