Trump Says He Will Probably Allow E15 Gasoline Sales All Year

[Swordsmyth]

U.S. President Donald Trump said on Thursday his administration may allow the sale of gasoline containing 15 percent ethanol year-round, something that could help farmers by bolstering corn demand. The Environmental Protection Agency currently bans the higher ethanol blend, called E15, during summer because of concerns it contributes to smog on hot days. Gasoline typically contains just 10 percent ethanol.
"We’re going to be going probably, probably to 15 and we’re going to be going to a 12-month period," Trump told reporters during a meeting with governors and lawmakers at the White House. "We’re going to work out something during the transition period, which is not easy, very complicated."
EPA spokeswoman Liz Bowman said earlier in the day the agency "has been assessing the legal validity of granting an E15 waiver since last summer" and is awaiting an outcome from discussions with the White House, the Department of Agriculture and Congress before making any final decisions.

More at: https://www.rigzone.com/news/wire/trump_says_he_will_probably_allow_e15_gasoline_sal es_all_year-12-apr-2018-154231-article?rss=true&yptr=yahoo

[Swordsmyth]

U.S. supermajors ExxonMobil and Chevron have asked the Environmental Protection Agency (EPA) to waive the obligations for biofuel blending for their smallest refineries—exemptions that are typically granted to small refiners under financial distress, Reuters (https://www.reuters.com/article/us-usa-biofuels-epa-refineries-exclusive/exclusive-chevron-exxon-seek-small-refinery-waivers-from-u-s-biofuels-law-idUSKBN1HJ32R) reports, quoting sources familiar with the matter.
Under the Renewable Fuel Standard (RFS), oil refiners are required to blend growing amounts of renewable fuels into gasoline and diesel. Refiners that don’t have the infrastructure to blend biofuels must purchase tradeable blending credits known as Renewable Identification Numbers, or RINs. The EPA has the authority to grant waivers from the renewable fuel standard to refineries whose oil processing capacity is below 75,000 bpd.
Those waivers have been traditionally given to refiners in hardship, but recently the U.S. Administration seems to have leaned to Big Oil in the battle with Big Corn that has been pitting lawmakers from the big oil states against those of the Midwest farm belt. EPA has reportedly granted an exemption (https://oilprice.com/Energy/Energy-General/Farmers-Hit-Hard-As-Trump-Backs-Big-Oil.html) to a large oil refiner, Andeavor.

More at: https://oilprice.com/Latest-Energy-News/World-News/Exxon-Chevron-Also-Seek-Small-Refinery-Biofuel-Waivers.html

[phill4paul]

"Probably" is a pretty solid position.

[Raginfridus]

Ethanol is dhit.

[jkr]

My car explodes with Delight

[Swordsmyth]

The U.S. Environmental Protection Agency (EPA) has granted an oil refinery owned by billionaire Carl Icahn a waiver from the biofuel blending regulations—a waiver typically given to companies in financial hardship, Reuters (https://www.reuters.com/article/us-usa-biofuels-epa-icahn/exclusive-u-s-epa-grants-biofuels-waiver-to-billionaire-icahns-oil-refinery-sources-idUSKBN1I10YB) reported on Monday, citing to two industry sources it had briefed on the matter.

More at: https://oilprice.com/Latest-Energy-News/World-News/EPA-Gives-Biofuel-Waiver-To-Billionaire-Icahns-Oil-Refinery.html

[Swordsmyth]

Continuing a national trend, the United States’ second-largest oil refining company has recently requested (https://www.reuters.com/article/us-usa-biofuels-marathon-pete-exclusive/exclusive-us-refining-giant-marathon-seeks-epa-biofuel-waiver-sources-idUSKCN1IO1I8) a biofuel hardship waiver from the Environmental Protection Agency (EPA). The waiver, if granted, would allow refining giant Marathon Petroleum Corp. to exempt one of its facilities from Obama-era federal biofuel quotas.
This move coincides with a recent campaign by the EPA to expand biofuel waivers, to the delight of the oil industry and the equally strong dismay of the corn lobby, who depend on the biofuel standard for sales of alternative corn-based fuels like ethanol. The Renewable Fuel Standard (RFS) has been a huge boon to farmers, creating a 15 billion gallon a year market for corn-based ethanol. On the other hand, over the past few months the EPA has saved the oil industry hundreds of millions of dollars in regulatory costs by way of similar biofuel hardship waivers.
These waivers are given to small refineries who are able to prove that complying with the RFS, which obligates them to mix biofuels (like ethanol) into their fuel, would result in “disproportionate economic hardship.” While the EPA has always had this authority, they have recently been ramping up their grants of these waivers under new administration and Scott Pruitt’s direction.
Now Ohio-based Marathon is pushing the limits of the waiver requisites by making a waiver request for one of their plants, since it certainly is not a “small” refinery by any stretch of the imagination. In fact, Marathon’s smallest refinery, based in Canton, Ohio, has an output of 93,000 barrels per day, well above the cap that the EPA has defined for “small refineries” at 75,000 barrels per day. While Marathon may be able to find a loophole by running the plant under capacity, or perhaps apply for just a portion of one of its larger facilities, the EPA has not publicly made any decision as to whether the request will be granted.

More at: https://oilprice.com/Energy/Crude-Oil/US-Oil-Companies-Look-To-Skirt-Biofuel-Quotas.html

[oyarde]

Whatever will help Danke when I put it on his credit card .

[Swordsmyth]

Washington has shelved indefinitely a planned overhaul of the national biofuels policy that sought to reduce costs for the oil industry, two sources told (https://www.reuters.com/article/us-usa-biofuels/trump-administration-biofuels-deal-delayed-indefinitely-sources-idUSKCN1J204I) Reuters, saying the move was the result of pressure from corn states prompted by concern such an overhaul will reduce demand for ethanol.
The news comes after months of tough negotiations as the administration has found itself on a tightrope between the oil industry on the one hand, and the ethanol industry on the other, with their interests at odds.

More at: https://oilprice.com/Latest-Energy-News/World-News/US-Biofuels-Overhaul-Delayed.html

[fedupinmo]

I'm looking for the E0 myself. Gasoline! :D

[Danke]

Whatever will help Danke when I put it on his credit card .

Any suspicious activity on my credit cards from a reservation, leads to them being canceled. my companies know I would never step foot on one of those.

[Swordsmyth]

President Trump will announce his plan on Tuesday to relax restrictions on selling more ethanol into the nation's gasoline supply, while also cutting costs for refiners.
The first part of the plan would allow 15 percent ethanol fuel blends, or E15, to be sold year-round, instead of being excluded from the summer driving season, according to an administration official who previewed the announcement on Monday.
The plan is being rolled out as Trump goes to Iowa to hold a midterm election rally and gain support from farmers. Corn growers and their supporters have been clamoring for the plan to counter low crop prices and new tariffs on U.S. agriculture products by China and the European Union. Upping E15 sales would bolster demand for corn by helping to expand the market for corn-based ethanol.

“We’re very excited to hear the president’s upcoming announcement," said Emily Skor, president and CEO of Growth Energy, a top ethanol lobbying group in Washington. "He knows farmers are hurting and they want action on E15 in time for the next summer driving season."
Since the fuel can be sold eight months out of the year, the administration’s goal is to have the Environmental Protection Agency finalize its rulemaking for the plan by next summer’s driving season in June, the official said. EPA has yet to unveil its official timeline for the regulation.
President Trump on Tuesday will direct EPA acting administrator Andrew Wheeler to undertake a rulemaking that addresses two specific areas of the nation’s renewable fuel program, the official explained.
First, the EPA is to expand the Reid vapor pressure waiver to fuel blends with up to 15 percent ethanol, which will allow for the sale of E15 year-round, the official said.
Second, EPA will take actions to help stabilize the unregulated market used by refiners to buy renewable identification number credits, or RINs. Refiners use the market to comply with the EPA Renewable Fuel Standard program, which they argue has caused significant increases in the cost of doing business.
The RIN stabilization effort will be done “by taking actions to limit manipulation and provide for additional transparency,” the official added.
The RIN market reforms appear to be the large piece of the plan. At least four separate actions will be part of the market reform effort.
The actions target market manipulation by traders and others, which in the past have led to price spikes in the cost of RINs. The refinery industry argues that the higher price of RINs has made it harder for them to turn a profit and remain economically solvent. It is also a prime reason why President Trump began sitting down with both refiners and ethanol producers a year ago to devise a “win-win” solution that both industries could live with.
The only problem is that the oil industry and refiners don’t want Trump to allow the year-round sale of E15, which they say will harm consumers’ vehicle engines that are not compatible with the fuel.
The American Petroleum Institute and the American Fuels and Petrochemical Manufacturers, representing the oil industry and refiners, sent a letter to Trump last week, advising him not to move forward with the plan, and instead work with Congress on a plan to reform the program.
The only way the oil groups say they would agree with Trump’s plan is if it called for EPA to sunset the renewable fuel program in 2022.

More at: https://www.washingtonexaminer.com/policy/energy/trump-unveils-new-plan-to-pump-up-ethanol

[axiomata]

Why not just get rid of the ethanol mandate? That would get rid of the seasonal cap.

Customers can choose E15 or E0, and the market will respond accordingly.

[r3volution 3.0]

Iowa beckons...

[axiomata]

Iowa beckons...

Trump doesn't have to win a primary there anymore. And the general election is far off.

At which time the democrats will probably have gone full socialist so I can't imagine Iowa being a real battleground.

[Swordsmyth]

Trump doesn't have to win a primary there anymore. And the general election is far off.

At which time the democrats will probably have gone full socialist so I can't imagine Iowa being a real battleground.
Iowa has house seats and the midterms are upon us.

[dean.engelhardt]

Why not just get rid of the ethanol mandate? That would get rid of the seasonal cap.

Customers can choose E15 or E0, and the market will respond accordingly.

Put me in the E0 camp. All my yard tools are now all electric. I got tired of having to buy a $5 additive every time I filled up my gas can or throw the tools in the trash after 2 years. Today's small carburetor engines are design for E0. The nearest E0 station from me is 2 hours away.

I drive a 2004 Tacoma and would like to keep it for a few years. I really don't think E15 will be good for it. I'll be losing 2-3 MPG, might have to change my fuel lines $$$, buy additive every refill $$$$; and probably have the engine go out on me years earlier than if I get to run E0.

[shakey1]

Anything that needs to be mandated is obviously not working.

[oyarde]

Anything that needs to be mandated is obviously not working.

The whole idea of taking one of the most important factors in the American food supply ( corn ) and putting it into gasoline is pretty flawed from the beginning from my way of looking at it . No percentage of any crop should be mandated to use for this but it should be available for purchase all year to anyone who wants it if it is available .

[Ender]

Why not just get rid of the ethanol mandate? That would get rid of the seasonal cap.

Customers can choose E15 or E0, and the market will respond accordingly.

Why just not make hemp legal- it can be made into oil & steel.


https://www.youtube.com/watch?v=srgE6Tzi3Lg

[devil21]

Well, that's one way to eventually remove all older cars that aren't control enabled, motorcycles (freedom of movement, not on planned autonomous car grid), generators (freedom of electricity), and force the adoption of all electric "power" tools by killing small engines en masse.

WINNING! I hope some corn farmers make a few dollars more while the rest of our engines are destroyed by this crap fuel.

Did I mention mileage is also substantially less than standard gas so we'll have to buy more of it?

DOUBLE WINNING!!!

(Trump's allegiance to Agenda 21 mandates surface into the public occasionally.)

[CaptUSA]

Why not just get rid of the ethanol mandate? That would get rid of the seasonal cap.

Customers can choose E15 or E0, and the market will respond accordingly.

Silly RPFer. That's not the way we do things.


Trump Says He Will Probably Allow E15 Gasoline Sales All Year

Do you not love that your rulers are so benevolent?!

[francisco]

Well, that's one way to eventually remove all older cars that aren't control enabled, motorcycles (freedom of movement, not on planned autonomous car grid), generators (freedom of electricity), and force the adoption of all electric "power" tools by killing small engines en masse.

WINNING! I hope some corn farmers make a few dollars more while the rest of our engines are destroyed by this crap fuel.

Did I mention mileage is also substantially less than standard gas so we'll have to buy more of it?

DOUBLE WINNING!!!

(Trump's allegiance to Agenda 21 mandates surface into the public occasionally.)

I'm tired of winning.

[kpitcher]

I never understood how red states are for a 10 billion dollar welfare for ethanol.

[nikcers]

I never understood how red states are for a 10 billion dollar welfare for ethanol.

Monsanto maybe? Don't they basically have a monopoly on corn?

[dean.engelhardt]

Well, that's one way to eventually remove all older cars that aren't control enabled, motorcycles (freedom of movement, not on planned autonomous car grid), generators (freedom of electricity), and force the adoption of all electric "power" tools by killing small engines en masse.

WINNING! I hope some corn farmers make a few dollars more while the rest of our engines are destroyed by this crap fuel.

Did I mention mileage is also substantially less than standard gas so we'll have to buy more of it?

DOUBLE WINNING!!!

(Trump's allegiance to Agenda 21 mandates surface into the public occasionally.)

You must spread some Reputation around before giving it to devil21 again.

My lawnmower, power washer, weed whacker, hedge trimmer, and leaf blower are all electric. I would prefer the more powerful gas powered, but I get sick of the engines getting fouled with ethanol.

[shakey1]

Monsanto maybe? Don't they basically have a monopoly on corn?

Yeah, they're turning corn into intellectual property.

[opal]

pure-gas.org

[Swordsmyth]

Exxon Mobil managed to get its hands on a financial hardship waiver from the EPA that will allow its Billings Refinery in Montana to escape the wrath of restrictive US biofuel laws, Reuters sources (https://www.reuters.com/article/us-usa-biofuels-exxon-mobil-exclusive/exclusive-oil-giant-exxon-secured-u-s-hardship-waiver-from-biofuel-laws-sources-idUSKCN1OI292?rpc=401&) claimed on Wednesday.
Just weeks ago, Reuters reported the EPA was suspending its refinery biofuel waiver program pending a thorough review of its scoring system that saw a record number of waivers granted in 2017. That news followed reports from a few months earlier that
The EPA granted 29 biofuel waivers in 2017, compared to 20 in 2016 and just 14 in 2015 under the previous administration.
Exxon, with over $19 billion in net income for 2017, is not the only oil giant to receive such a waiver, with Chevron (https://www.reuters.com/article/us-usa-biofuels-chevron-exclusive/exclusive-chevron-granted-waiver-from-u-s-biofuel-laws-at-utah-plant-source-idUSKCN1NP2E6) securing one for its Utah refinery earlier in the year. At the time, Chevron—with a net income of $9.2 billion in 2017—was the largest known company to secure a biofuel waiver. At the time, Chevron said that the EPA had granted several small refineries exemptions from the Renewable Fuel Standards, and that not securing a waiver would put Chevron refineries at disadvantage in this competitive market.

More at: https://oilprice.com/Latest-Energy-News/World-News/Exxon-Granted-Hardship-Waiver-From-Biofuel-Laws.html

[TheTexan]

may allow the sale of gasoline containing 15 percent ethanol year-round

How very generous of him!

[Anti Federalist]

Ugh, for fuck's sake.

[Swordsmyth]

The government shutdown that Trump says could last "a long time" without funding for a border wall may hurt farmers by delaying the administration’s ability to steer through the approval for year-round sales of a 15 percent ethanol blend for gasoline before the summer begins. That’s up from 10 percent allowed now.

The schedule for getting approval of the higher ethanol blend was already ambitious prior to the shutdown. The Environmental Protection Agency had promised to present a final rule in May, just four weeks before existing restrictions on 15 percent ethanol become binding. Now, though, the agency is largely inoperative.

The government shutdown is now 14 days old. “If you start getting in beyond these two weeks, here, then it does begin to ramp up the pressure because there won’t be people there to work on this stuff,” said Paul Argyropoulos, president of Policy Nexus Advisors in Damascus, Maryland, and a former senior policy adviser in the EPA’s Office of Transportation and Air Quality.

The proposed change has been controversial. Agricultural and oil-refinery interests have battled over whether the EPA has the authority to grant the higher blends for the summer months. Once the EPA issues the ruling, it will be legally challenged, Argyropoulos said.

More at: https://finance.yahoo.com/news/farmers-fear-another-hit-trump-115900950.html

[Swordsmyth]

Federal policy requires a certain volume of biofuels to be blended into the nation’s fuel mix. Each year, the EPA decides on the exact levels, and it is a bit of a zero-sum game between ethanol producers and oil refiners. The ethanol industry wants higher blending levels because that expands sales, while refiners want less in order to defray costs.


While perennially at odds, the two industries were at a bit of standstill for much of the Obama administration because while both sides surely had their gripes, there at least was some predictability about government policy.
That all changed under the Trump administration, and specifically, under the stewardship of Scott Pruitt, former administrator at EPA. Under his tenure, EPA ramped up the number of waivers that it granted to the refining industry, absolving some smaller refiners of the requirement to buy ethanol who claim the obligation would inflict economic hardship.
The move upset a fragile balance between the two industries, infuriating farmers and ethanol producers. The market for renewable identification numbers (RINs), which are the credits refiners can buy to offset their blending obligations, went haywire after the increase of waivers from EPA. The lack of policy clarity led higher volatility and lower prices for RINs, and politicians from farm states – allies of President Trump – demanded (https://www.washingtonexaminer.com/policy/energy/farm-state-senators-demand-answers-from-scott-pruitt-on-ethanol-waivers) EPA stop issuing so many waivers. Trump tried to stay above the fray, fearing angering one side over the other, and told his lieutenants to hash out (https://oilprice.com/Alternative-Energy/Biofuels/Corn-States-Win-In-Fight-Against-Refiners.html) a compromise.

Trump even proposed (https://oilprice.com/Alternative-Energy/Biofuels/Trump-Sides-With-Farmers-In-Battle-Against-Refiners.html) allowing the year-round sale of E15 – a higher concentration of ethanol that was off limits during summer months over air pollution concerns – as a way of making amends with corn and ethanol producers.


But the administration just issued a shocking decision to the corn and ethanol industries. On August 9, the EPA announced its decision on 2018 waiver requests, approving 31 of them while denying six.

More at: https://oilprice.com/Energy/Energy-General/Corn-Industry-Battered-By-Shocking-Ethanol-Decision.html

[brushfire]

...this is good news?

[Swordsmyth]

...this is good news?

The waivers are good news.
The all year E15 hasn't happened so far as I know.