U.S. governors take action to expand higher-ethanol gasoline blend -Breaking
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© Reuters. FILEPHOTO: An E15 sign, which advertises a gasoline containing 15% of alcohol, can be seen at Clive, Iowa (USA), May 17, 2015. REUTERS/Jim YoungBy Stephanie Kelly
NEW YORK, (Reuters) – Eight U.S. governors requesting that the Biden Administration apply rules to allow gasoline with a higher ethanol mix to be sold all year in their respective states.
In a letter addressed to the Environmental Protection Agency, the governors of Minnesota, Illinois, and Iowa stated that the E15 blend would be allowed year round to lower gasoline prices. These have increased to more than $4 per barrel since Russia invaded Ukraine.
Joe Biden announced earlier this month plans to permit summertime sales E15 (which uses a 15% alcohol blend). E15 has been banned from summer sales due to concerns that it can cause smog during hot weather. However, research shows that E15’s 15% blend is less polluting than the E10 which is sold all year.
However, biofuel supporters want to see a permanent solution that permits year-round E15 sales. An increase in the sales of this blend will likely lead to a greater demand for corn-based bioethanol.
Governors have the power to request the EPA to put E15/E10 on an equal basis with respect to volatility restrictions under the Clean Air Act. On Thursday, the Midwest governors informed the EPA that they were pursuing the year-round E15 route and have submitted the documentation.
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