A move to allow the sale of E-15 year-round has received widespread praise in Nebraska, but the oil industry isn’t happy.
American Petroleum Institute spokesman Frank Macchirolla won’t go so far as to say President Donald Trump’s recent decision is political, but he does say it fulfills a campaign promise the president made frequently in farm states.
“So, from that standpoint, I’m not surprised by their decision,” Macchirolla tells Nebraska Radio Network. “However, having said that, I think there are ways to approach the RFS that are more constructive.”
President Trump announced the decision to lift federal regulatory restrictions and allow the sale of the higher-ethanol blended gasoline year-round during a campaign rally in Council Bluffs, Iowa, playing both to Iowa and Nebraska agricultural interests. Iowa is the number one state in ethanol production, followed by Nebraska.
E-15, at present, cannot be sold during the summer months, a restriction the ethanol industry says has suppressed sales of the fuel.
Macchirolla even suggests an EPA waiver exceeds its authority, hinting a lawsuit could be coming. Macchirolla says it would be better to work on legislation. He says a bipartisan group in Congress has been working on a measure to update and reform the Renewable Fuel Standard (RFS), which he says could incorporate E-15 policy.
Macchirolla claims very few cars on the road can handle the higher ethanol content in E-15, adding it would be detrimental to small engines.
He says there’s no question an E-15 mandate would help farmers and the ethanol industry.
“But, at some point, a mandate also acts as a ceiling,” Macchirolla says. “And so, the opportunity to compete in a free market, in my mind, is a much better opportunity than one with a limited mandate.”
AUDIO: Brent Martin reports [:45]