By JORDAN STRICKLER

Kentucky Correspondent

WASHINGTON, D.C. — In a victory for ethanol supporters, President Trump has directed the U.S. EPA to begin the rulemaking process to expand the sales of corn ethanol to include E15.

The announcement sets off a review which could bring the fuel to pumps as soon as next summer. Under current law, sales of E15 are limited during the summer months.

The move comes at a critical time for farmers, when income is expected to be below 50 percent of 2013 levels and median farm income projected at a negative-$1,316. “This is a great day for agriculture; this is a great day for farmers,” said Matt Merritt, director of Public Relations for POET, a biofuel plant located in Sioux Falls, S.D.

“Uncertainties in trade and declining farm income have really hit farmers hard. This initiative will improve demand in the United States for ag products so we’re not as beholden to the foreign trade markets. This is a great long-term move for demand.”

Merritt said that the move to E15 will create another 7 billion gallons of biofuel a year – including 2 billion bushels from corn – and easing some of the current surplus.

The move to year-round E15 is also expected to save customers at the pump. The University of Illinois Department of Agricultural and Consumer Economics calculated that increasing the use of ethanol to a 10 percent blend in gasoline saved U.S. consumers $7 billion between 2008-16.

Merritt estimates the move to increase the blend will save customers 5-10 cents per gallon over the standard E10. “This is a real cost-saver in a world where we’ve seen oil prices going up and gas prices being a bigger and bigger issue for consumers. Those extra savings are a pretty big deal.”

Brent Erickson, executive vice president of the Biotechnology Innovation Organization’s (BIO) Industrial and Environmental Section, added, “Using a similar model (as the U of I study) – accounting for both the price difference between ethanol and gasoline blend stock and the price difference between ethanol and other octane additives – BIO calculates that the switch from E10 to E15 could save U.S. drivers approximately $9.5 billion per year.”

The announcement comes a month before midterm elections, which are proving to be tight in Iowa, the nation’s leader in corn production. The Hawkeye State was one of the hardest hit by Trump’s current trade skirmish with China, and victories at the polls for Republicans could determine whether they keep control of the U.S. House.

It could also determine the Iowa gubernatorial race, which remains a toss-up with incumbent Republican Gov. Kim Reynolds being edged out slightly by Democrat Fred Hubbell in recent polls.

Not everyone is happy with the directive, however. “President Trump’s decision to proceed with year-round E15 sales places bad policy on top of bad policy,” said Thom Dammrich, president of the North American Manufacturers Assoc.

"In addition to being legally dubious, this action will put millions of American consumers at a greater risk of mis-fueling, so a small, politically important group can benefit.”

Dammrich said 65 percent of people assume that any gas sold at the pump is safe for all their vehicles, and do not realize federal regulation prohibits the use of E15 in small engines – like those in boats, lawn mowers and motorcycles. He calls for President Trump to abandon his "irresponsible proposal" and instead work with Congress on reforming the Renewable Fuel Standard.

"Otherwise, we will continue to be stuck with a system that only picks winners and losers," he said.

Chrysler, BMW, Nissan, Toyota and Volkswagen have already said their warranties will not cover fuel-related damage claims attributed to E15. Others, such as Ford, Honda, Kia, Mercedes-Benz and Volvo stated E15 use will void warranties, citing potential corrosive damage to fuel lines, gaskets and other engine components.

Many politicians, including Rep. Gene Green (D-Texas), believe ethanol can be detrimental to vehicles. "I’m concerned consumers will pay more over time because of wear and tear on their vehicles, and I believe that increased use of ethanol can contribute to more pollution during the summer months,” he said.

Merritt rebuked this statement, saying, “There have been an estimated 5 billion miles now driven on E15 by consumers across the country and we have found no issues whatsoever. These are fear tactics put out by the oil industry and have already been proven not to be true.

“E15 wasn’t tested on vehicles prior to 2001. That’s was where the cutoff was, so you won’t necessarily find damage in those vehicles, but it’s just that the vehicles tested were 2001 and newer. This is a fuel that has been tested more than any other by the Department of Energy in the fuel supply.”

The move will also play a positive role for the environment, he said. “The chemicals that ethanol replaces are toxic and right off the bat, you will see a 43 percent reduction in greenhouse gas emissions from biofuels. This is something that will benefit the world. This is something that was needed right now, and this is something that will be beneficial for years to come.”