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President Donald Trump will order acting EPA Administrator Andrew Wheeler to start the process of lifting a summertime ban on the sale of E15, a type of gasoline-biofuel blend, according to a senior White House official.
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At the same time, the Trump administration will aim to limit speculation in the market for biofuel credits, the official told reporters on Monday.
The Trump administration will seek to reform two parts of the nation's policy to promote biofuels, marking its latest attempt to reach a mutually beneficial outcome for two of the president's key constituencies: the fossil fuel industry and farm states.
President Donald Trump will order acting EPA Administrator Andrew Wheeler to start the process of lifting a summertime ban on the sale of E15, a type of gasoline-biofuel blend, according to a senior White House official. The change is calculated to shore up demand for biofuels such as corn-based ethanol and boost the fortunes of farmers.
At the same time, the Trump administration will aim to limit speculation in the market for biofuel credits, the official told reporters on Monday. The nation's refiners have long complained that the obscure market is flawed, resulting in price spikes that drive up the cost of complying with federal rules and putting financial pressure on small refineries.
Both issues fall under the nation's Renewable Fuel Standard, a 2005 program that requires American refineries to blend biofuels into transportation and heating fuel. The program was designed to reduce U.S. dependence on foreign fossil fuels, cut pollution and greenhouse gas emissions and bolster the domestic biofuel industry.
Trump has walked a tightrope on the issue throughout his presidency. His Environmental Protection Agency has angered farm states by granting more waivers than usual to small refineries, denting demand for biofuels. Meanwhile, refiners have been disappointed by the EPA's refusal to cut the amount of biofuel they're required to blend into gasoline and diesel.
The president has sought a path forward with corn-state senators, such as Iowa Republicans Chuck Grassley and Joni Ernst, as well as energy district lawmakers, including Republicans Ted Cruz of Texas and Pat Toomey of Pennsylvania. However, a solution has so far eluded the White House.
The proposal Trump plans to announce will allow the year-round sale of E15, a fuel composed of 15 percent ethanol and 85 percent gasoline. E15 sales are currently blocked from the beginning of June through the middle of September because the fuel blend does not meet ozone standards spelled out in the Clean Air Act.