Trump Administration Waives Ethanol Restrictions on Gas to Ease Prices

The Trump administration is extending the sale of a gasoline blend with higher ethanol through the summer in an attempt to alleviate rising gas prices.

“EPA is working with our federal partners to reduce unnecessary costs and uncertainty and ensure that gas prices remain affordable for all Americans through the summer,” Lee Zeldin, the administrator of the Environmental Protection Agency, said in a statement Wednesday.

U.S. and Israel’s war in Iran has effectively shut down the Strait of Hormuz, spiking gas prices in recent weeks. E15, which is made with 15% corn-based ethanol, is cheaper per gallon than the typical E10 gasoline.

E15 is not sold in most states during the summer because it has smog-forming potential that would violate federal air pollution requirements.

The EPA is temporarily waiving those requirements from May 1 to May 20, the maximum number of days allowed under the Clean Air Act. This window is the first in a series of expected waivers to be granted throughout the summer, if necessary.

“The agency will be ready to extend the emergency fuel waivers as long as the fuel supply circumstances warrant such action,” the EPA said in a press release.

The announcement is a big win for ethanol lobbyists and a bipartisan group of lawmakers, mostly from midwestern states, who have long unsuccessfully pushed for E15 to be sold year-round. Ethanol supporters welcomed the administration’s E15 waiver but urged Congress to pass pro-E15 legislation.

“If ever there were justifiable conditions to merit an emergency waiver for E15, it would be now as fuel prices have skyrocketed from war with Iran and a historical oil market disruption in the Strait of Hormuz,” said Brian Jennings, CEO of the American Coalition for Ethanol. “We welcome the Trump administration’s action which will help consumers access a significantly less expensive fuel, shielding drivers from Middle East fuel price volatility.”

Sen. Amy Klobuchar requested this week that President Donald Trump let drivers use E15 fuel.

“Granting a year-round waiver would ensure a stable fuel supply, reduce prices at the pump, and support farmers who are struggling with low commodity prices,” Klobuchar, who is the ranking member of the Senate Agriculture Committee, wrote on Tuesday.

Former President Joe Biden used emergency waivers in 2022 to reduce costs at the pump during a midterm year.

Rising gas prices also hang over this year’s contested midterm election, which is expected to test which party delivers a more promising answer to the affordability crisis.