US EPA Approves Higher-Ethanol Fuel to Lower Gas Prices

The US Environmental Protection Agency said it would allow the widespread sales of a higher-ethanol gas blend, a move aimed at reducing consumer prices. This higher-ethanol blend has traditionally been prohibited in warm weather due to concerns it could worsen smog.

President Trump is optimistic about the move, saying it will directly lower prices at the pump and give a clear demand signal to domestic biofuels producers. The summer waiver for E15 has become commonplace in recent years, with both Republicans and Democrats calling for it to become year-round and permanent.

The move is expected to aid farmers hit hard by higher prices for diesel and fertilizer caused by the Iran war. However, some experts have expressed concerns that the higher levels of corrosive ethanol in E15 could pose risks to older cars, boats, and all-terrain vehicles.

Additionally, the increased use of corn for ethanol could lead to higher costs for animal feed, potentially offsetting the benefits at the pump. The move has both supporters and critics, with the oil industry generally opposing expansion of E15.

The Renewable Fuels Association, an ethanol trade group, has said that E15 is already allowed in some states, including Iowa, Illinois, Minnesota, Nebraska, Missouri, Wisconsin, and most of South Dakota. The association has also noted that it's legal in cities that require reformulated gasoline.

The US senator Amy Klobuchar has urged the Trump administration to take immediate action to curb rising domestic fuel costs. While the move is seen as a positive step, its effectiveness in lowering gas prices remains to be seen.

The US EPA's decision is a major breakthrough in the quest for affordable energy. By temporarily easing summer fuel requirements, the move gives American consumers continued access to affordable, reliable energy.