The EPA intends to approve the year-round sale of E15 in time for the summer driving season, said administrator Andrew Wheeler on Tuesday, pointing to President Trump’s support for the change in rules. In proposing an end to the ban on summertime sales, the EPA set a 45-day comment period on its proposal.
The year-round sale of E15 would be a clear victory for farmers and ethanol makers. But in a concession to the oil industry, the E15 rule change would be accompanied by revised rules for trade in the credits, known as RINs, that refiners purchase if they cannot blend enough biofuels to satisfy the Renewable Fuel Standard. The RINs revisions would discourage speculation in prices. Refiners say high RIN prices drive up the cost of the ethanol mandate.
“Consistent with President Trump’s direction, EPA is working to propose and finalize these changes by the summer driving season,” said Wheeler. The EPA said it will hold a public hearing on the proposals near the end of March. The comment period ends on April 29, leaving the EPA a month to review comments from the public and issue a rule before June 1, the traditional cutoff for E15 sales.
“With just 80 days left before the start of the summer driving season, finalizing and implementing the E15 regulatory fix remains a tall order,” said the pro-ethanol Renewable Fuels Association. The American Petroleum Institute, speaking for the oil industry, said, “This so-called deal only helps the ethanol industry. … Our industry plans to aggressively pursue all available legal remedies to protect consumers from this flawed policy.” Environmental groups also have threatened lawsuits to block summer sales.
To read the EPA’s proposed rule on year-round E15 sales and RIN trading, click here.