US EPA delays Midwest ethanol expansion South Dakota, Ohio

The U.S. Environmental Protection Agency announced on Friday that it will delay by one year the expansion of sales of higher ethanol blended gasoline in South Dakota, Ohio and the other eight Midwestern States who requested increased sales.

The EPA released a statement on Friday following its decision made last week that it would implement the April 28 date set by eight Midwest Governors who requested year-round sale of gasoline containing 15 percent ethanol (also known as E15). States could request a one-year extension until February 26, 2018.

After South Dakota and Ohio opted to delay the EPA implementation, it will only affect Illinois, Iowa Minnesota, Missouri Nebraska and Wisconsin.

The EPA expansion will allow E15 as well as the more readily available E10 blend to be sold in the summer months, when the current policy prevents E15 from being sold.

Biofuel producers want to expand sales of E15, but they prefer a solution that is available nationwide and not just in the Midwest.

Oil trade group American Petroleum Institute prefers a national policy as well, since some industry players are concerned that a fragmented marketplace could lead to localized disruptions in supply.

The EPA announced on Friday that Kansas, which wasn't one of the eight states covered by the final rule but had made a request similar to Ohio and South Dakota for a delay of one year.

Grace Hoge, Kelly's spokesperson, said that (Kansas Gov. Laura Kelly) had expressed interest in a temporary Gasoline Volatility waiver for the summer months.

While Kansas has not requested to be included in the recent actions taken by Midwest states, Governor Kelly is committed to addressing this issue and will continue to advocate for a federal remedy that gives consumers the freedom to choose their preferred fuel type. (Reporting and Editing by Marguerita choy)

(source: Reuters)