EPA Plan Would Allow More Ethanol In Gas

Higher blends of ethanol in gasoline could be coming to eight Midwest states in 2024 under a new rule proposed by the Environmental Protection Agency.

Under the proposal, the higher blends could be sold during the summer in Iowa, Illinois, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin. Most gasoline sold in the U.S. is now blended with 10% ethanol, which is allowed throughout the year.

The biofuels industry has pushed to allow sales of gasoline blended with 15% ethanol during the summer, which hasn’t been allowed because of concerns that it would worsen smog during hot weather.

The issue is especially important in those Midwest states because farmers there grow the bulk of the nation’s corn, and nearly 40% of that crop is used to produce ethanol. As more ethanol goes into gas tanks, demand for corn should increase and prices for the commodity paid to farmers should also rise.

The American Coalition for Ethanol said in a statement that the group appreciated the EPA’s proposal but argued there was no reason to wait until 2024 . The group accused the agency of delaying the action because of pressure from the petroleum industry.

The group urged the EPA to allow the change to take effect in 2023 for the eight Midwestern states and for the Biden administration to allow the expanded ethanol sales in other regions of the country. The EPA responded that there wasn’t time to change the fuel supply for this summer.

The EPA plans to hold a hearing on the proposed rule in late March or early April.