Exclusive: Biden Administration to Approve E15 Gasoline Expansion Starting in 2025
The White House’s Decision on E15 Gasoline
The White House is set to approve a request from a group of Midwest governors to allow year-round sales of gasoline with higher blends of ethanol. However, the start date will be pushed into next year, according to two sources familiar with discussions.
Impact on the Biofuel Industry
The decision is expected to be bittersweet for the biofuel industry, which seeks to expand sales of corn-based ethanol. The 2025 start date may cause frustration. However, the one-year delay could potentially postpone localized price spikes and supply issues until after the U.S. election.
Details of the Plan
Under the plan, the administration would grant a 2022 request from the governors of eight Midwestern states to allow year-round sales of E15, or gasoline with 15% ethanol, starting next year. In the meantime, the EPA could issue a temporary waiver enabling such sales as needed.
Political Implications
Wisconsin and Minnesota are battleground states in this year’s presidential contest. Inflation and the economy are key vulnerabilities for President Joe Biden’s re-election campaign.
Environmental Concerns
The U.S. government restricts sales of E15 gasoline in summer months due to environmental concerns over smog.
Expected Decision Timeline
The administration is expected to issue a decision by late March.
Response from the EPA
The EPA declined to comment for this article, as the rule is still in an interagency review process.
Effective Date and Industry Reaction
The EPA had sent a final rule on the proposal to the White House in December with an effective date of April 28, 2024. The new timeline would push the effective date to 2025, causing controversy among stakeholders.
Industry Perspectives
For years, the ethanol industry has advocated for lifting the restrictions on E15 sales nationwide. Oil refiners have warned that a patchwork approach to approving E15 sales could complicate fuel supply logistics and raise the risk of spot shortages.
Conclusion
In conclusion, the approval of year-round sales of E15 gasoline with higher blends of ethanol is expected to have significant implications for the biofuel industry, the oil industry, and the political landscape.
