Exclusive: Biden administration to move on Midwest ethanol-blended gasoline rule this week -sources

The Biden administration is expected on Wednesday to recommend for approval a rule that would allow expanded sales of gasoline with a higher ethanol blend in certain U.S. Midwest states, based on a request from governors in those states, four sources familiar with the matter said on Tuesday.

The rule would be a win for the ethanol industry, which has sought for years to expand sales of so-called E15, which contains 15% ethanol, and for the farm industry, as ethanol is made from corn.

The U.S. Environmental Protection Agency is expected to seek a public comment period on the rule, sources said.from major corn-producing Midwestern states including Iowa, Nebraska and Illinois requested that the EPA effectively lift the ban in their states. U.S. Environmental Protection Agency head Michael Regan said in September the agency intended to act on the request before next summer.

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