800 326 9054In a move cheered by the ethanol industry, the Trump administration announced a temporary emergency fuel waiver aimed at boosting U.S. gasoline supply and lowering prices at the pump.
Starting Sept. 1, the Environmental Protection Agency’s action will allow the sale of E10, gasoline blended with 10% ethanol, at a higher Reid Vapor Pressure, or RVP. This “will increase the domestic gasoline supply by hundreds of thousands of barrels per day by effectively ending the summer-blend gasoline requirement early,” the Environmental Protection Agency said in a statement on Thursday. “With the increase of domestic gasoline supply on the market, Americans can expect to see reduced gas prices.”
The move comes about two and a half months before high-stakes midterm elections that will determine control of the U.S. House and Senate next year. Republicans, who currently hold the majority in both chambers, are grappling with tight races in GOP strongholds like Iowa and Texas. The EPA waivers also coincide with a renewed surge in gasoline prices amid turmoil in the Middle East.
The national average for a gallon of regular gasoline rose 3 cents from last week to $4.10 on Thursday, the highest level ever for this date, motor travel group AAA said. War between the U.S. and Iran is pushing up oil prices amid uncertainty around the Strait of Hormuz. About 25% of the world’s seaborne oil and a third of its fertilizer typically passes through the waterway that connects the Persian Gulf with the Gulf of Oman.
“This August is shaping up to be the highest on record,” AAA said on Thursday, referring to U.S. gasoline prices. “So far, the monthly average is $4.06, currently surpassing 2022 when the monthly average for August was $3.97. Even though gasoline demand is down, which is typical for this time of year, crude oil is pushing up the national average. Crude oil prices remain in the $80 per barrel range amid continued instability in the Strait of Hormuz.”
“President Trump has prioritized ensuring American families have affordable gasoline and energy. Throughout this administration, EPA has taken decisive action like issuing RVP waivers to provide relief at the pump and fortify our gasoline supply chain,” said EPA Administrator Lee Zeldin.
The Renewable Fuels Association, a top ethanol trade group, thanked the agency for effectively ending the summertime fuel blend requirement and extending an existing waiver to allow lower-cost E15 fuel blends in the summer months.
“With no end in sight to higher fuel prices, the Trump administration has made the right move to increase the volume of E10 and E15 available to American drivers in the weeks ahead,” RFA President and CEO Geoff Cooper said in a statement. “When it comes to E15, we continue our call for federal legislation to make summer waivers of an obsolete regulation unnecessary by allowing the lower-carbon fuel to be permanently available during the summer months. E15 has been proven to reduce vehicular smog-forming emissions compared to both E10 and ethanol-free gasoline — and should therefore be more widely.”
Another leading ethanol trade group, Growth Energy, also praised the move. “Today’s announcement aligns with this EPA’s track record of giving retailers the certainty they need to keep E15 on the market all year long,” Growth Energy CEO Emily Skor said in a news release. “Now we need Congress to follow suit by passing legislation to permanently allow year-round E15 every year. Retailers, farmers, and drivers shouldn’t have to rely on EPA to provide separate waivers each year in order to have access to this more affordable fuel option. We applaud EPA for taking this initiative, and hope Congress does the same when it returns from recess by getting year-round E15 to the president’s desk.”
On the fuel waivers, EPA said it consulted with the Energy Department on the matter, as required by the Clean Air Act, and both agencies agree the move is in the public interest.
Push for year-round E15 continues
The ag industry, farm-state lawmakers, and President Donald Trump are all pressing for Congress to pass legislation that would allow year-round E15, or 15% ethanol-gasoline blends. Not surprisingly, it’s the leading topic this week at the American Coalition for Ethanol (ACE) biofuels conference in Minneapolis.
The gathering of ethanol producers comes just a couple weeks after a Senate farm bill that includes year-round E15 failed to win approval of the Senate Agriculture Committee. Chairman John Boozman, R-Ark., plans to hold another vote when the chamber returns from recess in mid-September. The House passed its own version of E15 legislation in May. Both bills face opposition from key parts of the petroleum industry.
“I think our struggle is going to be making sure that we can bring a compromise between the two versions,” Rep. Michelle Fischbach, R-Minn., told the ACE conference on Thursday.
Separately, EPA said its waiver actions will stay in place through Sept. 15, 2026, for the maximum period allowed of 20 days, and that it will monitor gasoline supplies and extend the waiver if needed.
EPA singled out New York and California for not acting on waivers the agency issued May 1 that remove fuel restrictions across the country. The origins of the restrictions stem from concern about the formation of smog in warmer months, though that issue is broadly considered as outdated amid technological advancements.
“The agency’s action has lowered gas prices in the states that have followed EPA’s suit and waived their requirements. In stark contrast, blue-state politicians in New York and California have not adopted these standards, driving up prices for their own residents,” EPA said.
Iowa and Texas
Separately, on the political front, the non-partisan Cook Political Report with Amy Walter changed its rating on the Texas Senate race between Democratic state Rep. James Talarico and Republican Ken Paxton, the Texas attorney general, from “Lean Republican” to “Toss Up.”
“While Talarico remains right-side up in his favorables – at least so far – the deeply flawed Paxton is underwater by as much as double digits in some surveys and is notably underperforming even a generic Republican in GOP polling,” Cook analyst Jessica Taylor said in a post on Thursday. “In addition to a bevy of public polls, private Republican polling has had the race tied for some time.”
Iowa’s Senate race between GOP Rep. Ashley Hinson and Democratic state Rep. Josh Turek also was moved from “Lean Republican” to “Toss Up.”
“This ratings shift isn’t an indictment of Hinson, who’s running a strong campaign and is a prodigious fundraiser, but simply reflective of the challenging political environment,” Taylor said. “Turek needs to raise more money if this is going to remain a top-tier opportunity for Democrats, but the early spending Republicans are already deploying to define Turek shows they’re concerned about their prospects in this now-battleground state.”
Iowa is the largest U.S. producer of ethanol and the corn used to make it.
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*Sourced from Agri-Pulse.