Dive Brief:
- The Environmental Protection Agency on Thursday granted Midwestern states' request to allow year-round sales of gasoline with higher blends of corn-based ethanol.
- The decision, which will take effect in April 2025, allows for the sale of E15 gasoline during the summer months in eight states: Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin.
- E15 sales are normally banned in summer months over concerns of air pollution. State governors in 2022 pushed to loosen restrictions, arguing an expansion would boost fuel supply and lead to lower prices at the gas pump.
Dive Insight:
An expansion of E15 gasoline sales would be a boon for U.S. corn farmers who are seeing prices crash due to excess supplies. Corn production is estimated to reach a record high for the 2023-2024 crop year, with world supply "rising more than use," according to the U.S. Department of Agriculture.
However, the 2025 implementation date means farmers will need to wait to realize the full benefits. Farm groups are pushing for the Biden administration to take additional action to allow for expanded sales this summer, and are also lobbying for national legislation that would grant year-round sales across the country.
“We are glad to hear this decision from EPA, as it puts us on the road to providing more certainty to America’s corn growers and consumers who will save money at the pump,” Harold Wolle, president of the National Corn Growers Association, said in a statement. “However, given that this decision will not take effect until the summer of 2025, we question and are concerned about the implications of the timeline for growers and consumers this summer.”
The EPA could still issue a temporary waiver to approve E15 sales this summer. The agency issued emergency waivers in 2022 and 2023, saying an expansion would help lower gas prices amid ongoing fuel supply issues tied to the war in Ukraine.
In its final rule, EPA said that it moved to extend the implementation date to 2025 due to "concerns over insufficient fuel supply with an earlier effective date."
The decision is a "double-edged sword," according to the Renewable Fuels Association, which said it creates confusion about E15 availability this summer.
“While we are pleased to see EPA has finally approved year-round E15 in these eight states, we are extremely disappointed by the Agency’s needless decision to delay implementation until 2025," President and CEO Geoff Cooper said in a statement. "It’s helpful to finally have some certainty about 2025 and beyond, but what happens this summer?”
