EPA proposes allowing year-round sale of cheaper, higher-ethanol gas blends in Wisconsin and seven other states

Wisconsin drivers would be able to buy lower-cost gasoline with a higher blend of ethanol year-round under a rule proposed Wednesday by the U.S. Environmental Protection Agency.

An EPA rule dating to 2011 prohibits summer sale of gas with 15% ethanol, known as E15 or Unlimited 88, in Wisconsin and seven other Midwestern states due to concerns that the more volatile fuel would contribute to smog in warmer weather. The fuel was available in Wisconsin last summer under a waiver from the Biden administration in response to soaring gas prices. The waiver expired in September.

The new rule would go into effect in 2024.

The new rule would be a victory for the biofuels industry, which for years has pushed to allow sales of gasoline mixed with with 15% ethanol during the summer. The industry welcomed the EPA’s proposal, which had been requested by Gov. Tony Evers and the governors of Iowa, Illinois, Minnesota, Missouri, Nebraska, Ohio and South Dakota.

The issue is especially important to Midwest farmers, who grow the bulk of the nation’s corn. Nearly 40% of that crop is used to produce ethanol. In Wisconsin, 37% of the annual corn crop is used for ethanol, according to the Wisconsin Corn Growers Association.

Most gasoline sold in the U.S. is now blended with 10% ethanol, which is allowed throughout the year. Most cars and light trucks built since 2001 can run on a 15% ethanol blend according to the EPA.

E15 is higher octane than the standard blend, and is generally less expensive. A spot check of Wisconsin prices on gasbuddy.com, found retailer prices 10 to 20 cents per gallon lower than the standard blend.

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.

“This delay means consumers in conventional gasoline areas of the country will be forced to pay more at the pump this year and retailers who want to offer lower cost E15 to their customers will be penalized,” the coalition said.

The group urged the EPA to allow the change to take effect in 2023 and to allow expanded ethanol sales in other regions of the country.

The American Fuel & Petrochemical Manufacturers industry group said the EPA was right to delay new rules until 2024 because summer gasoline production is already underway. Even with more lead time, the organization predicted that creating a special blend for the Midwestern states would increase costs and could lead to tighter fuel supplies in the region because not all refiners, pipelines and terminals are ready to handle the different blend.

“Fuel manufacturers and regional pipeline and terminal operators have made clear to the Biden administration and the eight petitioning states that the push to outlaw the current blend of summertime gasoline and replace it with a boutique blend is going to impose major costs on the Midwest’s fuel supply chain and consumers – ranging from $500-$800 million per year, and potentially higher if unforeseen interruptions occur,” the organization said in a statement.

The EPA said it would hold a hearing on the proposed rule in late March or early April. The agency didn’t immediately respond to a request to comment about questions regarding its proposed rule.

The Associated Press contributed to this report.

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This article originally appeared on Milwaukee Journal Sentinel: EPA proposal would allow more ethanol in gas in Wisconsin, 7 other Midwest states

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