Biden EPA to Allow Summer Sales of High-Ethanol E15 Gasoline

April 28, 2023

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Jennifer A. Dlouhy (Bloomberg/Yahoo!) Biden administration officials have decided to issue an emergency waiver that will allow widespread sales of higher-ethanol E15 gasoline this summer, following a strategy used last year to help tamp down high pump prices.

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To justify the emergency move, the EPA is set to cite similar conditions that provided the foundation for a series of the temporary waivers last year, the people said. At the time, the EPA argued that the fuel volatility waiver for E15 was in the public interest and needed to address “fuel supply circumstances” spurred by the war in Ukraine.

Ethanol advocates argued those circumstances are actually worse now — with tight gasoline inventories and less emergency crude in the nation’s stockpile even as the war rages on.

There are political benefits, too. While gasoline prices aren’t near last year’s highs, they remain elevated heading into the summer driving season — and are one of the most visible forms of inflation, weighing on Biden’s reelection bid. If prices spike again, Biden could point to the E15 action as an attempt to provide relief.

Even so, E15 is only available at about 2,700 of the nation’s more than 150,000 filling stations. However, an analysis conducted for the pro-ethanol group Growth Energy said that when summertime E15 sales were greenlighted last year, the blend cost 16 cents-per-gallon less than conventional E10 on average.

Oil industry advocates have questioned the legality of the emergency approach, raising the specter of a court challenge. READ MORE

U.S. EPA to allow summer sales of gasoline with higher blend of ethanol -sources (Reuters)

EPA poised to issue emergency waiver allowing summer-time E15 sales (Politico Pro)

EPA ISSUES EMERGENCY WAIVER FOR E15 (Minnesota Bio-Fuels Association)

EPA waives restrictions on higher-ethanol gasoline for second straight summer (Washington Examiner)

EPA Issues Emergency Fuel Waiver for E15 Sales: EPA takes action to provide consumers relief at the pump by helping ensure an adequate fuel supply (U.S. Environmental Protection Agency)

RFA Welcomes Emergency E15 Waiver for Summer Driving Season (Renewable Fuels Association)

Ethanol Report on E15 Summer Waiver (Energy.AgWired.com; includes AUDIO)

EPA waives limits on summer sales of ethanol-heavier fuel blends (The Hill)

EPA allows gasoline with higher ethanol blend during summer (Associated Press)

EPA Issues E15 Emergency Summer Waiver, Placating Biofuel Lobby (Inside EPA)

EPA to issue emergency waiver for summer E15 sales (Agri-Pulse)

EPA ALLOWS E15 TO BE SOLD FOR ’23 SUMMER DRIVING SEASON (Brownfield Ag News)

Biden approaches summer with fewer options on gas prices (Washington Examiner)

Biden Unlocks Sales of Higher-Ethanol E15 Gasoline After Corn Belt Pressure: Emergency waivers also used to combat pump prices in 2022; EPA move exempts E15 from seasonal limits on fuel volatility (Bloomberg)

EPA issues emergency waiver allowing continued access to E15 (Ethanol Producer Magazine)

Klobuchar Statement on Waiver Allowing the Sale of Higher Blends of Ethanol for Summer 2023 (Bemidji Minnesota)

Biofuels groups praise EPA issuance of E15 waiver (The Fence Post)

VILSACK TOUTS E15 WAIVER AS PROOF OF ADMINISTRATION’S SUPPORT FOR BIOFUELS (Brownfield Ag News)

CORN GROWERS BACK E15 EMERGENCY WAIVER (Brownfiels Ag News)

Drivers Save on E15 and AFBF Calls for Food Labeling Enforcement (AgriBusiness Update)

American Coalition for Ethanol speaks on President Biden’s E15 emergency waiver (RFD TV; includes AUDIO)

E-15 could save you up to 30 cents a gallon in Nebraska, ethanol board says (KLKN TV; includes VIDEO)

CORN FARMERS BENEFIT FROM YEAR-ROUND E15 (Brownfield Ag News)

EPA to allow Kansas to sell E15 this summer (Center Square)

EPA ADMINISTRATOR REGAN COMMENTS ON E15 WAIVER (Brownfield Ag News)

EPA's summer approval of E15 should be the first step toward a long-term fuel solution (Washington Examiner/National Corn Growers Association)

Excerpt from Minnesota Bio-Fuels Association: The Environmental Protection Agency (EPA) has issued a national emergency waiver to allow E15 to be sold from June 1 to Sept 15 this year.

“Allowing E15 sales during the summer driving season will not only help increase fuel supply, but support American farmers, strengthen US energy security, and provide relief to drivers across the country,” said Michael Regan, EPA administrator, in statement.

The EPA said the emergency fuel waiver will go into effect May 1.

“The EPA’s announcement of an emergency waiver allowing the sale of E15 this summer is the right decision for Minnesota’s consumers, the environment, and economy. Minnesota has been a leader in offering higher blends of ethanol like E15 because it saves drivers money, improves air quality, and reduces our dependence on fossil fuels. We especially thank Sen. Amy Klobuchar, Rep. Angie Craig, and all the bipartisan members of the Minnesota delegation who helped advocate with the administration to secure this critical result,” said Brian Werner, executive director of the Minnesota Bio-Fuels Association.

Read the EPA’s full announcement here. READ MORE

Excerpt from Washington Examiner: EPA said the waiver would help to protect drivers from fuel supply crises by reducing the nation's reliance on imported fossil fuels and would improve U.S. energy independence, as well as support American agriculture and manufacturing.

"Allowing E15 sales during the summer driving season will not only help increase fuel supply, but support American farmers, strengthen U.S. energy security, and provide relief to drivers across the country," Administrator Michael Regan said.

The agency estimated E15 is about 25 cents a gallon cheaper than E10, the most common blend of gasoline on the market, although the vast majority of the nation's retail stations do not carry the fuel.

The Biden administration turned to E15 last April as part of its strategy to reduce high fuel prices, which were rising on higher oil prices after Russia invaded Ukraine. READ MORE

Excerpt from U.S. Environmental Protection Agency: The U.S. Environmental Protection Agency today is issuing an emergency fuel waiver to allow E15 gasoline — gasoline blended with 15% ethanol — to be sold during the summer driving season.

This action will provide Americans with relief at the pump from ongoing market supply issues created by Russia’s unprovoked war in Ukraine by increasing fuel supply and offering consumers more choices at the pump. The waiver will help protect Americans from fuel supply crises by reducing our reliance on imported fossil fuels, building U.S. energy independence, and supporting American agriculture and manufacturing. Current estimates indicate that on average, E15 is about 25 cents a gallon cheaper than E10.

“The Biden-Harris Administration is committed to protecting Americans from fuel supply challenges resulting from the ongoing war in Ukraine by ensuring consumers have more choices at the pump,” said Administrator Michael S. Regan. “Allowing E15 sales during the summer driving season will not only help increase fuel supply, but support American farmers, strengthen U.S. energy security, and provide relief to drivers across the country.”

The Clean Air Act allows the EPA Administrator, in consultation with DOE, to temporarily waive certain fuel requirements to address shortages. As a result of the ongoing war in Ukraine, Administrator Regan determined that extreme and unusual fuel supply circumstances exist and has granted a temporary waiver to help ensure that an adequate supply of gasoline is available. As required by law, EPA and DOE evaluated the situation and determined that granting the waiver was in the public interest.

Currently, in roughly two-thirds of the country, E15 cannot be sold from terminals starting on May 1 and at retail stations starting on June 1. EPA is providing relief by extending the 1-psi Reid Vapor Pressure (RVP) waiver that currently applies to E10 gasoline to E15, which will enable E15 sales throughout the summer driving season in these areas, if necessary. This action only extends the 1-psi waiver to E15 in parts of the country where it already exists for E10. E15 can already be sold year-round in parts of the country that have a Reformulated Gasoline (RFG) program.

Because the RVP of E10 and E15 gasoline used by consumers will be the same (both will be 1 psi higher than otherwise required by EPA or state regulations) EPA does not expect any impact on air quality from this limited action. EPA’s research has shown no significant impact on evaporative emissions when the 1-psi waiver is extended to E15. With no significant impacts on emissions from cars and trucks, we expect consumers can continue to use E15 without concern that its use in the summer will impact air quality.

EPA’s emergency fuel waiver will go into effect on May 1 when terminal operators would otherwise no longer be able to sell E15 in the affected regions of the country and will last through May 20 which is the statutory maximum of 20 days. EPA will continue to monitor the supply with industry and federal partners, and the Agency expects to issue new waivers effectively extending the emergency fuel waiver until such time as the extreme and unusual fuel supply circumstances due to the war in Ukraine are no longer present.

For more information on this announcement, please visit EPA’s Fuel Waivers webpage. READ MORE

Excerpt from Renewable Fuels Association: EPA took the same action ahead of last summer, resulting in nearly $60 million in savings at the pump for American consumers during the summer months. Recent analysis by the RFA shows that since the beginning of 2022, E15 has typically sold for 20-30 cents per gallon less than regular E10 gasoline, saving drivers an average of $3-5 on each fill-up.

Today’s decision will also reduce summertime air pollution, as shown in RFA’s “E15 Fact Check” released last spring. And, according to EPA, “consumers can continue to use E15 without concern that its use in the summer will impact air quality.”

Prior to today’s action, EPA on March 6 proposed to approve a bipartisan petition from eight Midwest governors that will allow retailers and marketers in their states to permanently sell E15 year-round beginning in 2024. READ MORE

Excerpt from Energy.AgWired.com: In this edition of the Ethanol Report podcast, Renewable Fuels Association Senior Vice president for Government and Public Affairs Troy Bredenkamp talks about the waiver and what comes next to avoid the same situation next year. The report also includes audio with EPA Administrator Michael Regan, Rep. Randy Feenstra (R-IA), and Rep. Rusty Johnson (R-SD) from a House Agriculture Committee hearing held April 19. READ MORE

Excerpt from Washington Examiner/ National Corn Growers Association: Yet full market access for this fuel choice has continued to hit roadblocks, despite bipartisan efforts from the EPA, Congress, and governors to address obsolete regulations — and they’re not the only ones who recognize the need for change. It’s not often that groups representing convenience stores, energy producers, manufacturers, and agriculture agree on fuel issues. But they’re all calling on Congress to move forward with the Consumer and Fuel Retailer Choice Act, bipartisan legislation that would remove the outdated and unnecessary red tape impeding access to the lower-cost and lower-emission choice of E15.

This legislation is especially important today. The U.S. Strategic Petroleum Reserve (SPR) currently is at its lowest level in 30 years , and in many areas of the country, fuel supply is even lower than it was one year ago when the EPA took similar action to maintain the availability of E15. What’s more, OPEC’s recent decision to cut oil production by more than 1 million barrels per day puts pressure on the American fuel supply.

Congress should also move forward with the Next Generation Fuels Act to help the market transition to cleaner liquid fuels and vehicles to ensure that consumers have access to more affordable vehicle and fuel choices in the long run. This bill would establish a clean, high-octane fuel standard to help automakers deploy advanced engines to improve fuel efficiency and reduce emissions.

Both pieces of legislation would be a win-win for the consumer and the environment. Today, more than 98 % of U.S. gasoline contains ethanol, thanks to cost-saving 10% ethanol blends sold throughout the country. Higher blends such as E15 take greater advantage of the benefits of this homegrown fuel, and E15 is approved for all 2001 and newer vehicles — nearly all vehicles on the road today.

Moreover, ethanol use results in up to 52% fewer greenhouse gas emissions than gasoline and provides drivers with increased savings at the pump. In fact, a comparison of pump prices from more than 550 retail stations during the past year shows drivers saved at least 25 cents per gallon with E15. In addition to being lower in carbon emissions, E15 has lower volatility than regular fuel, and using E15 results in lower evaporative and exhaust emissions, which is important during the summer driving season. READ MORE