The Trump administration granted farmers and the ethanol industry a significant advantage by issuing a waiver permitting higher corn-based ethanol blends in gasoline this summer.
Environmental Protection Agency Administrator Lee Zeldin announced this at CERAWeek in Texas, highlighting the administration’s focus on “American energy dominance” and offering relief from high gas prices.
Critics question the waiver’s effectiveness in these goals.
The move occurs amid rising gas prices linked to tensions with Iran, presenting a political challenge for President Donald Trump, who is also losing support from the farming community, a crucial base in his electoral victories.
Zeldin emphasized Trump’s commitment to affordable domestic energy during his speech, noting significant achievements in this direction over the administration’s first year.
Announced shortly before expected updates to biofuels blending requirements, the waiver has significant implications for national energy and farm policies, with critics warning of negative environmental impacts.
The biofuel and agriculture industries frequently clash with gas refiners over blending quotas, with the former advocating higher quotas against the latter’s preference for lower ones.
Environmentalists and researchers question the emission-reduction benefits mandated by the Renewable Fuel Standard, established by Congress in 2005, which supports American agriculture and policy.
The waiver allows E15 sales, a fuel with up to 15% ethanol, which is typically banned in summer for its volatility and smog contribution. For five years, both the Trump and Biden administrations have granted this waiver on emergency grounds.
The EPA will also forego enforcing certain blend limits under the Clean Air Act, allowing different ethanol percentages in various states based on air-quality needs.
This decision aims to address consumer dissatisfaction with rising energy costs due to the Strait of Hormuz oil chokepoint following U.S. actions in Iran.
It provides a boost to farmers facing low corn and soybean prices, exacerbated by Trump’s trade conflict with China and rising production costs from increased fertilizer and fuel expenses.
The E15 waiver is temporary, prompting farm-state lawmakers and lobbyists to urge Congress for legislation permitting year-round sales.
Sen. Amy Klobuchar remarked on the relief such measures provide amid high costs due to the Iran conflict, noting that savings at the gas pump can make a significant difference. Gas prices have risen to nearly $4 per gallon, with projections of up to 30 cents savings per gallon, although industry analysts estimate single-digit savings.
Klobuchar, representing a major corn- and soy-producing state, introduced legislation for year-round higher ethanol blends sales in 2023.
The EPA approved year-round E15 sales in 2019, but an industry lawsuit led to a ruling against it by the U.S. Court of Appeals for D.C., citing overreach.
Both sides await the EPA’s 2026 and 2027 blending standards. A proposed rule last year increased biofuel volume requirements. Trump is expected to meet farmers and biofuel producers soon, with possible standards announcements.
Analysts argue that increasing biofuel mandates will strain U.S. agriculture’s corn and soybean production capacity, as current surpluses are offset by high demand for oils, leading to tight supplies.
Jeremy Martin of the Union of Concerned Scientists criticized the proposal for ignoring domestic feedstock availability. Meeting these mandates may require imports and shifting vegetable oils from food to fuel markets, raising fuel and food prices, increasing the deficit, and contributing to deforestation.
Research indicates biofuel mandates have led to significant deforestation, increasing emissions compared to petroleum-based fuels. Similar conclusions have been drawn about corn ethanol’s impact on emissions.
Biofuel expert Scott Irwin noted that summer E15 waivers have modestly increased ethanol’s share of the U.S. fuel mix from 9.5% to 10.5% over a decade. Despite slow growth, even small increases in ethanol blending can significantly impact domestic demand.
Original Story at insideclimatenews.org