Court strikes Trump EPA rule for full-year 15% ethanol sales

DES MOINES, Iowa (AP) — A federal appeals court on Friday threw out a Trump-era Environmental Protection Agency rule change that allowed for the sale of a 15% ethanol gasoline blend in the summer months.

The decision deals a significant blow to the ethanol industry and corn farmers who grow the crop from which the fuel additive is made. They had anticipated increased ethanol demand through year-round sales of the higher blend.

Most gasoline sold in the U.S. today is blended with 10% ethanol. Corn farmers and ethanol refiners have pushed for the government to allow the widespread sale of a 15% ethanol blend.

The Trump administration made the change to fulfill a campaign promise to Midwest farmers. The EPA under President Donald Trump announced the change in May 2019, ending a summer ban on the E15 blend. Provisions of the Clean Air Act have prohibited the sale of certain fuels with a higher volatility from June 1 through Sept. 15 to limit smog. Congress has allowed 10% ethanol, and the EPA in its 2019 ruling revised the interpretation of the exemption to federal law to include the 15% ethanol blend.

Ethanol supporters contend that using more of the corn-based renewable fuel is better for the environment and helps meet federal climate change goals.

Three judges on the U.S. Circuit Court of Appeals for the District of Columbia issued Friday's decision. They said it's clear from federal law that Congress balanced “wide-ranging economic, energy-security, and geopolitical implications” and that the wording of the law “reflects a compromise, not simply a desire to maximize ethanol production at all costs.” They concluded Congress did not intend to allow ethanol blends higher than 10% to be widely sold year-round. They said the EPA overstepped its authority.

The American...