Biofuel ProducersĚýAsk Trump For Year-Round E15 Sales
American Petroleum Institute Joins Coalition of Retailers, Producers
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The largest oil and gas trade group in the U.S. has gone full circle on a proposal to allow year-round sales of fuels of higher ethanol blends — first backing it, then opposing and now supporting it again.
In a letter delivered Dec. 4 to the White House, the American Petroleum Institute joined a coalition of biofuel producers and fuel retailers asking President Donald Trump to push Congress to develop legislation on the issue. In October, however, API said it opposed a bill allowing for gasoline blended with up to 15% ethanol, called E15, to be sold year-round, marking a reversal at the time.
The Environmental Protection Agency said in a statement changes to biofuel regulations require an act of Congress. “EPA will follow the law accordingly,” it added.
When it comes to reforming the nation’s biofuel policy, the oil and agricultural industries have long agreed it needs to be done but differed on what to change. This letter represents the latest effort by the different industries to find common ground.
The letter also seeks to limit the EPA’s Small Refinery Exemptions program, which allows refiners to ask to be exempted from certain renewable fuel blending mandates. This year, the Trump administration has granted more than 100 full and partial exemptions to small refiners nationwide.
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“The current SRE structure has encouraged a system of winners and losers that distorts the marketplace, creates instability, and ultimately, hurts consumers,” the letter says, according to a copy reviewed by Bloomberg News. “A more consistent and narrowly applied SRE structure would create a far more predictable regulatory environment.”
The sale of E15 historically has been restricted in the summer due to air pollution rules restricting sources of emissions that may worsen smog, although the EPA has issued some short-term emergency waivers to keep it in use. The API said that it has long supported a path toward full-year use of E15, but the legislation proposed earlier this year did not reflect industry needs.
