Representatives of the U.S. ethanol industry urged the U.S. EPA to take immediate action to make E15 available during the summer 2023 driving season in comments submitted to the agency on April 20 as part of its Midwest E15 rulemaking.

The U.S. EPA on March 1 released a proposed rule that aims to allow year-round E15 sales in Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin starting in 2024. A public comment period on rulemaking closed April 20.

The agency issued the proposed rule in response to a petition filed by several Midwestern governors in April 2022 requesting that the EPA remove the 1-psi volatility waiver for gasoline-ethanol blends containing 10 percent ethanol in their states, which would effectively allow E15 to be sold year-round.

In their petitions, the governors requested that the change become effective before the summer 2023 driving season. In the proposed rule, however, the EPA included an effective date of 2024, citing petitions filed by stakeholders asking for a year-long delay. As a result of that delay, representatives of the ethanol industry have urged the EPA to issue an emergency waiver allowing year-round sales of E15 during the upcoming 2023 summer driving season, in line with an emergency waiver issued last year.

In its comments on the Midwest E15 proposed rule, the Renewable Fuels Association urged the EPA to impellent the rulemaking now rather than waiting until 2024. “There is no economic, environmental, or legal justification for the Agency to defer implementation another year,” wrote Geoff Cooper, president and CEO of the RFA. “If there is any problem with implementing the governors’ requests this summer, it is one of the administration’s own making, which is not a legitimate reason for further delay.”

Cooper pointed out that because the original governors’ petition requesting year-round E15 was submitted in April 2022, EPA had a legal duty to approve and implement it by the end of July of last year. Even though the law clearly establishes a 90-day deadline for implementing a petition from governors, “the administration did not act on the petition for nearly a year, and now EPA is using this delay as an excuse to defer implementation for another year. This is creating considerable uncertainty in the marketplace and putting at risk hundreds of millions of dollars of infrastructure investment by fuel retailers, ethanol producers, the U.S. Department of Agriculture, and other stakeholders.”

Cooper also stressed that the EPA did not demonstrate that implementing the year-round E15 regulation this summer would cause an insufficient supply of gasoline in the petitioning states, noting that an insufficient supply is the only permissible justification for delaying implementation. He also indicated that the EPA has mischaracterized RFS-commissioned studies that show implementation of the governors’ request in 2023 is expected to be manageable, and said any difficulty in implementing the regulation this summer would likely be a result of the EPA’s lengthy delay in responding to the governors’ petitions.

Growth Energy told EPA that implementing the Midwest E15 petitions now would extend access to cleaner, more affordable biofuel blends. “For motorists, the value proposition of E15 is clear,” wrote Chris Bliley, senior vice president of regulatory affairs at Growth Energy. “It gives consumers an additional choice at the pump that allows an additional pathway to market for homegrown ethanol.” 

In the letter, Bliley also highlighted E15’s advantages in terms of enhancing U.S. energy security and decreasing volatility in the American fuel market. “Reliance on petroleum energy sources can lead to substantial swings in fuel prices, as seen during the 2022 summer driving season as prices skyrocketed in response to the Russian invasion of Ukraine, inflation, and other factors,” he said. “During this period, E15 provided consumers with a significantly lower-cost fuel option at the pump, with savings of $0.16/gallon nationwide and up to $0.96/gallon in certain locations. If E15 were to replace E10 on a nationwide basis, consumer spending on motor fuel would decrease by $20.6 billion.” 

The American Coalition for Ethanol also called on the EPA to take swift action to implement the governors’ petitions. While ACE appreciates EPA finally taking action on the governors’ petitions, CEO Brian Jennings explained if EPA chooses not to implement the rule in 2023, the agency’s “legally questionable delay to 2024 will force millions of people in conventional gasoline areas of the U.S. to pay much more at the pump during this year’s summer driving season – on the heels of last year’s record-high gasoline prices and continued inflationary pressure on American families.”  

With the sense of urgency about the fast-approaching June 1, 2023 summer driving season and market access for E15 in all areas of the country, including conventional gasoline areas, Jennings urged the agency to take emergency action in ACE’s comments. “Given the pressing need for consumers in conventional gasoline areas of the country to have access to the lowest-cost fuel available to most vehicles on the road this summer, we strongly urge EPA to take emergency steps pursuant to Section 211(c)(4)(C)(ii) to allow E15 for the 2023 summer driving season, similar to the steps taken by yourself and President Biden last year.”

“The conditions used by the administration to justify invoking this emergency statutory authority last year persist today – in fact some market indicators are more concerning today,” Jennings added.

ACE’s comments argue how EPA’s proposal favors refiners and their “anticompetitive behavior” over consumers, retailers and the environment.

Jennings concluded by reiterating if there are real concerns related to the gasoline supply chain relative to a 2023 implementation date, they are problems of EPA’s own making. “…if the agency had responded to the eight petitioning states within the statutorily required 90 days there would be no need to fret about refiner concerns with timing.”

Jennings added, “EPA should balance the interests and side with consumers, retailers and the environment instead of refiners by finalizing a regulation removing the volatility waiver in these states for the 2023 summer driving season, consistent with the governors’ 2022 request and the statute.”