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Expanding the market for E15 has long been a policy goal for
farmers and producers of ethanol, a corn-based product, but
concerns that some older vehicles don't run well on the product
have been a headwind. Current federal E15 labels warn of
possible engine damage.
The Trump administration, meanwhile, has been trying to shore up
support in the Farm Belt ahead of the election through favorable
announcements for biofuel advocates.
An announcement for a proposal on the labeling changes could
come soon, two of the sources said. None of the sources could
say exactly how the administration might alter the labeling.
EPA and the White House did not immediately comment.
President Donald Trump in mid-September said in a tweet he would
allow states to permit fuel retailers to use their current pumps
to sell E15.
Under U.S. law, refiners must blend billions of gallons of
biofuels into their fuel pool, or buy credits from those that
do. Refiners that prove the requirements harm them financially
can get waivers from the obligations.
So-called small refinery exemptions, or SREs, have been a
lightning rod of controversy between the Corn and Oil lobbies.
Biofuel advocates say the exemptions hurt demand for their
product, while the oil industry refutes that and says the
waivers helps small refiners stay afloat.
The Trump administration in September sided with farmers in the
ongoing debate when it rejected scores of requests from refiners
for waivers that would have retroactively spared them from their
obligation.
(Reporting by Stephanie Kelly; editing by Richard Pullin)
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