The White House will approve a request from a group of Midwestern governors to allow year-round sales of gasoline with higher ethanol blends, but will push back the start date until next year, two sources familiar with the discussions said.
The decision will likely be bittersweet for the biofuels industry, which wants to expand sales of corn-based ethanol but may be frustrated by the 2025 start date. The one-year delay could postpone any potential localized price spikes and supply problems that the oil industry says could arise from the decision until after the U.S. election, the sources said.
Government will comply with 2022 request from 8 governors to allow annual sales of E15 starting next year. Sources confirmed. In the meantime, the EPA could issue a temporary exemption allowing sales as needed.
Wisconsin and Minnesota are decisive states in this year's presidential race in November. Inflation and the economy are fundamental vulnerabilities for US President Joe Biden's re-election campaign.
The US government restricts sales of E15 gasoline in the summer months due to environmental concerns about air pollution.
The government is expected to issue a decision by the end of March, the sources said.
The EPA has decided not to comment on the matter as the rule is still in the process of interagency review.
The EPA sent a final rule on the proposal to the White House in December, with a start date of April 28, 2024. The new timeline would push the effective date to 2025, the sources said.
The ethanol industry seeks to lift restrictions on E15, alleging exaggeration of environmental impacts to expand sales nationally.
Source: Jarrett Renshaw and Stephanie Kelly | Notícias Agrícolas
