US EPA allows temporary expansion of higher-ethanol gasoline blend this summer

By Stephanie Kelly

NEW YORK, April 19 (Reuters) - The U.S. Environmental Protection Agency will temporarily expand sales of higher-ethanol blends of gasoline this summer in an effort to reduce potential supply disruptions amid ongoing conflicts in Ukraine and the Middle East, it said in a letter dated Friday.

Reuters exclusively reported the impending announcement on Thursday.

The decision marks the third consecutive year the administration has lengthened the period during which Americans can keep buying E15, a gasoline that uses a 15% ethanol blend. Sales are effectively blocked from June 1 to Sept.

Adding ethanol to gasoline is known to increase smog pollution in hot weather, but research has shown little difference between E15 and the more-widely available E10 blends.

"Considering that no significant change in air pollution is projected to occur as a result of this action, the EPA concludes that this action is in the public interest," EPA Administrator Michael Regan wrote.

The news was cheered by the Farm Belt, an important constituency ahead of this year's presidential election, who will likely see increased demand for their products.

"With gas prices on the rise again and geopolitical conflict roiling global energy markets, we applaud President Biden and EPA Administrator Michael Regan for taking decisive action to combat potential fuel shortages and keep a lid on gas prices this summer," said Renewable Fuels Association President and chief executive Geoff Cooper.

Lawmakers, including Senator John Thune, a Republican from South Dakota, and Senator Dick Durbin, a Democrat from Illinois, had argued in a letter to Biden that allowing expanded sales of E15 would increase energy security.

The waiver is effective on May 1 and will continue for 20 days. The administration intends to renew the waiver until it is no longer necessary, it said.

The corn industry lobby has long tried to expand year-round sales of E15, an effort that culminated in February, when the administration approved a request from Midwestern governors that would allow summertime sales of E15 in their states, starting in 2025. The industry is still pushing for a nationwide, permanent expansion of E15. (Reporting by Stephanie Kelly Editing by Bill Berkrot)