EPA opens up sales on higher ethanol content gasoline, in blow to refineries

A fueling station pump in Lawrence, Kan., offers various grades of fuel, including E15. (Associated Press) A fueling station pump in Lawrence, Kan., offers various grades of fuel, including E15. (Associated Press) Photo: Robert White, HO Photo: Robert White, HO Image 1 of / 1 Caption Close EPA opens up sales on higher ethanol content gasoline, in blow to refineries 1 / 1 Back to Gallery

WASHINGTON - Gasoline with a higher concentration of ethanol - branded E15 - can now be sold year round, the Environmental Protection Agency announced Friday.

The EPA had long restricted sales of the fuel during summer months to prevent against potentially dangerous increases in air pollution. But under pressure from Midwestern farmers, whose corn crops feed ethanol production, the Trump administration announced last year it planned to waive the restriction.

"As President Trump promised, EPA is approving the year-round sale of E15 in time for summer driving season, giving drivers more choices at the pump," EPA Administrator Andrew Wheeler said in a statement.

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Within the ethanol industry, hopes are the end of the summer restriction will lead more gasoline stations to sell E15, which contains a 15 percent concentration of ethanol compared to the 10 percent in standard gasoline. So far, E15 remains a niche product primarily available in the Midwest.

"Year-round E15 will also provide a badly needed long-term demand boost for our industry and America's farmers, who face a number of daunting challenges today," Geoff Cooper, president of the Renewable Fuels Association said in a statement.

The expanded sales of ethanol deal a blow to U.S. oil refineries, who are already watching national gasoline sales stagnate under increased efficiency standards for cars and trucks.

Representatives of the oil and gas industry are already hinting they plan to challenge the rule change in court.

"The statutory language leaves no question that the EPA lacks authority to extend the E10 volatility waiver to E15. Finalizing this aspect of the proposed rule would clearly be unlawful, and we strongly oppose it," Chet Thompson, president of American Fuel & Petrochemical Manufacturers, said in a statement last month.

In its announcement, the EPA said it was also changing the rules for the trading of credits used to track that ethanol is being blended into the fuel supply - known as Renewables Identification Numbers, or RINs. The price of those credits had skyrocketed in recent years amid increased speculation from Wall Street investors.

Traders that exceed a certain threshold of RINs now will be required to disclose their holdings publicly. Also, EPA said it will improve its monitoring of the RIN market through increased data collection and work with the Internal Revenue Service to stamp out incidents of RIN fraud.