U.S. EPA sends proposed rule for higher ethanol-blend gasoline to White House
WASHINGTON, (Reuters) - The U.S. Environmental Protection Agency said it had sent a draft of its proposed rule allowing year-round sales of higher ethanol blends of gasoline to the White House Office of Budget for review.
The rule expanding sales of so-called E15 was promised by President Donald Trump late last year as a way to help corn farmers, but also includes measures sought by the oil industry to curb biofuel credit market speculation.
"We hope to expeditiously propose and finalize the rule consistent with the President’s direction," EPA spokesman Mike Abboud said in an email to Reuters. Following the interagency process, the rule will be put out for public comment before being finalized.
The process needs to be completed before June 1 to allow for gasoline with a higher blend of ethanol, also known as E15, to be available for summer sales when driving demand picks up. The EPA said it was on track to finalize the rule by then.
Trump announced in October he was directing the EPA to allow year-round sales of E15, a victory for the corn industry. Combining the rule with Renewable Identification Number (RIN) market reforms was a concession to the rival oil industry.
Under the U.S. Renewable Fuels Standard, oil refiners have to blend increasing volumes of biofuels into the nation's gasoline and diesel each year, or purchase credits - called RINs - from those who do.
The EPA had planned to release the draft rule in early February but was delayed by a 35 day-long partial federal government shutdown.
E15 gasoline contains 15 percent ethanol, versus the 10 percent found in most U.S. gasoline. The ban had been imposed over concerns that E15 contributes to smog in hot weather. (Reporting by Humeyra Pamuk; editing by Jonathan Oatis)
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