By Jacob Fischler | D.C. Bureau | Gov & Politics
The U.S. Environmental Protection Agency will allow gas stations to sell a blended fuel containing 15% ethanol into the summer season in an effort to lower gas prices, Administrator Lee Zeldin said Wednesday.
The blend, known as E15, is usually barred in many Midwest states over the summer to reduce smog, though the federal government has routinely in recent years issued waivers to allow summer sales. The move, which ethanol producers applauded, could prevent a spike in prices at the pump during the war with Iran that has scrambled oil markets.
“EPA is working with our federal partners to reduce unnecessary costs and uncertainty and ensure that gas prices remain affordable for all Americans through the summer,” Zeldin said in a statement. “This emergency action will provide American families with relief by increasing fuel supply and consumer choice.”
Bipartisan officials in corn-producing states had sought the waiver, and continue to push for year-round availability of the product. Ethanol is manufactured from corn and other plant materials.
Move wins praise from industry, officials
Seven Midwestern governors — Republicans Kim Reynolds of Iowa, Mike Kehoe of Missouri, Jim Pillen of Nebraska and Larry Rhoden of South Dakota and Democrats Tim Walz of Minnesota, JB Pritzker of Illinois and Tony Evers of Wisconsin — signed a March 6 letter to Zeldin requesting the waiver.
More recently, the top Democrat on the U.S. Senate Agriculture Committee also endorsed the move.
“With gas prices spiking, now’s the time to make E15 available year-round,” Minnesota U.S. Sen. Amy Klobuchar, said in a March 19 statement. “It will help lower costs and decrease our dependence on foreign oil.”
U.S. Rep. Adrian Smith, a Nebraska Republican, also applauded Wednesday’s announcement, and called on Congress to make the policy permanent.
Ethanol industry groups also approved of the waiver. Geoff Cooper, the president and CEO of the national ethanol advocacy group Renewable Fuels Association, said the move was “exactly what the supply chain needs right now.”
“President Trump and Administrator Zeldin understand that year-round E15 is a solution that can extend domestic fuel supplies and reduce pump prices for hardworking American families,” Cooper said. “With geopolitical conflict roiling energy markets worldwide, we applaud President Trump and Administrator Zeldin for acting quickly and decisively to combat potential fuel shortages and help keep a lid on gas prices this summer.”
Iowa Renewable Fuels Association Executive Director Monte Shaw also thanked the administration in a statement.
“With rising fuel prices and a war in the Middle East, this is the worst time to force retailers to bag E15 pumps. E15 adds home-grown supply and reduces prices for consumers,” he said.
Iran war disrupts oil market
Gas prices have risen since President Donald Trump launched strikes against Iran on Feb. 28. Transport through the Strait of Hormuz has been limited due to threats from Iran during the conflict.
White House press secretary Karoline Leavitt noted at Wednesday’s press briefing the waiver was a part of the administration’s response to rising fuel costs during the war.
“Obviously the administration is coming up with creative new solutions by the day to keep the price of oil stable, something the president wants to see,” she said.
Trump will also welcome nearly 1,000 farmers to the White House for a National Agriculture Day event on Friday, where the president plans to promote his record on the issue, Leavitt said.
The E15 waiver will be in effect May 1 through May 20. Twenty days is the longest period a single waiver can be applied under the Clean Air Act, the EPA said in the press release. The move signals the administration views further waivers as an option as restrictions ramp up over the summer.
Shauneen Miranda contributed to this report.
