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Trump Advances Changes to Unleash Ethanol Sales in Gasoline
13.03.2019 13:11 "Agro Perspectiva" (Kyiv) —
As of yesterday, the Trump administration advanced a plan meant to expand the U.S. market for maize-based ethanol and place trading restrictions on credits that refiners use to prove they are using biofuel, Bloomberg reports.
As to the report, the Environmental Protection Agency proposal is a first step in fulfilling President Donald Trump promise to unleash sales of gasoline containing 15% ethanol and deliver at least a symbolic victory to corn farmers in the Midwest who have been battered by his trade fight with China. Air pollution requirements currently block sales of that E15 gasoline within this year Jun 1 - Sept 15 within the areas where smog is a problem, and the EPA proposal would effectively lift those restrictions so it could be sold year round.
At the same time, the administration is seeking to mollify some independent oil refiners that complain about volatile prices and possible hoarding of the credits required to prove they have satisfied annual biofuel blending quotas.
It is to be admitted, if the EPA proposal survives legal challenges, it could help grow the domestic market for ethanol over the long run, though analysts say gains could take a while to materialize.
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