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EPA to Allow Year-Round E-15

06/04/2019

After due consideration of submissions, the EPA has decided to allow the year-round inclusion of up to 15 percent ethanol in gasoline.

Although beneficial to corn farmers and ethanol refiners, the proposal was opposed by the environmental lobby and by fuel refiners.

It is anticipated that the energy industry will initiate legal action to overturn the EPA decision based on the fact that opponents to E-15 maintain that the EPA has exceeded its authority.

The Clean Air Act allows challenges within 60 days of an EPA decision.

 

Extending E-15 by an additional four months to the entire year is expected to increase ethanol consumption by two percent. This is relatively inconsequential given the disparity between production capacity and demand.

The impact on the poultry industry should be minimal despite justified objections raised by poultry industry associations. The recent spike in the price of corn as a result of late planting and projected lower yields has had far greater impact than the EPA decision.