WASHINGTON (AP) — The Trump administration is moving to allow year-round sales of gasoline with higher blends of ethanol, a boon for Iowa and other farm states that have pushed for greater sales of the corn-based fuel.
President Donald Trump announced he is lifting a federal ban on summer sales of high-ethanol blends during a trip to Iowa on Tuesday.
“Today we are unleashing the power of E15 to fuel our country all year long,” Trump said at a campaign rally, referring to gasoline blends with up to 15 percent ethanol.
At the White House earlier Tuesday,
Trump said: “It’s an amazing substance. You look at the Indy cars. They run 100 percent on ethanol.”
He said he wants more energy production and to help farmers and refiners.
“I want more because I don’t like $74,” Trump said, referring to the current price of a barrel of crude oil. “If I have to do more — whether it’s through ethanol or another means — that’s what I want. I want low prices.”
The long-expected announcement is something of a reward to Iowa Sen. Chuck Grassley, who as Senate Judiciary Committee chairman led a contentious but successful fight to confirm Brett Kavanaugh to the Supreme Court. The veteran Republican lawmaker is the Senate’s leading ethanol proponent and sharply criticized the Trump administration’s proposed rollback in ethanol volumes earlier this year.
Grassley called the proposal “a very good victory for agriculture,” ethanol workers and the environment. “Everything about this is good, good, good,” Grassley said Tuesday after he and Sen. Joni Ernst, R-Iowa, met with Trump at the White House.
The White House said the Environmental Protection Agency will publish a rule to allow high-ethanol blends as part of a package of proposed changes to the ethanol mandate.
Gasoline typically contains 10 percent ethanol.
The EPA currently bans the high-ethanol blend, called E15, during the summer because of concerns that it contributes to smog on hot days, a claim ethanol industry advocates say is unfounded.