EPA Provides Some Clarity on Mid-Level Blends in Court

(Urban Air Institute) A three-judge-panel in the U.S. Court of Appeals for the D.C. Circuit heard oral arguments Tuesday that the Environmental Protection Agency (EPA) did not go far enough when it extended the 1 pound RVP waiver to allow year-round E15. The Urban Air Initiative (UAI), along with a broad alliance of ethanol, agriculture and clean fuel groups filed a lawsuit in August of 2019 arguing that the EPA regulatory barriers limiting the sales of higher blends of ethanol are illegal.

The Urban Air Initiative agrees that the EPA’s decision to allow the year-round sales of E15 was a step in the right direction, however the EPA had the legal obligation to also allow the sales of blends higher than 15% ethanol. In court, attorneys representing UAI argued that the EPA’s interpretation of the Clean Air Act’s sub-sim provision to prohibit sale of E16-E50 blends even in flex fuel vehicles is unlawful. UAI attorneys told the court that since ethanol is now used in the certification of vehicles, the sub-sim law no longer limits the addition of ethanol in gasoline. Therefore, UAI asked the judges to reject the EPA’s limit at E15 and allow the RVP waiver for higher blends of ethanol.

“We are encouraged by the court’s careful consideration of our arguments and look forward to its opinion. Regardless of how the court ends up ruling, these oral arguments are a victory for ethanol. The EPA repeatedly told the court that fuel retailers may continue making E20 and E30 for use in flex-fuel vehicles, seemingly walking back statements it had made in the E15 rule and other rules that implied that practice was illegal. While EPA must do more to clear up the cloud it has created on mid-level blends, EPA’s concessions are a good start,” said Attorney Jonathan Berry with Boyden Gray and Associates.

UAI President Dave VanderGriend says the arguments made in court are a small step in the right direction. “EPA’s inconsistent and arbitrary treatment of mid-level blends must stop. As we’ve argued, there is no reason to deny E20 and E30 an RVP summertime waiver, given that E20 and E30 produce significantly less evaporative emissions than E10 and are more affordable to consumers. Urban Air will continue fighting to lift these arbitrary restrictions on mid-level blends so cleaner fuel additives like ethanol can be used to improve liquid fuel.”

Besides the Urban Air Initiative, co-petitioners in this case also include National Farmers Union, South Dakota Farmers Union, Farmers Union Enterprises, Jackson Express, Jump Start, Clean Fuels Development Coalition, Big River Resources, LLC, Fagen, Inc., Glacial Lakes Energy, LLC, and Little Sioux Corn Processors. A ruling by the court is expected sometime this summer.

The Urban Air Initiative is a nonprofit organization dedicated to improving air quality and protecting public health by reducing vehicle emissions. We are focused on increasing the use of clean ethanol in our gasoline supply to replace harmful aromatic compounds. Urban Air is helping meet public policy goals to lower emissions and reduce carbon in our environment through scientific studies and real world data to promote new fuels, engine design, and public awareness. To learn more, visit FixOurFuel.com . READ MORE

Excerpt from DTN Progressive Farmer: In a joint statement on Tuesday, Growth Energy, RFA, and NCGA said, "Oil refiners are simply trying to reclaim more market share by blocking American drivers from year-round access to a more affordable, lower-carbon fuel at the pump. Studies have repeatedly shown that the volatility of E15 is lower than that of E10. Other recent studies find that a nationwide switch from E10 to E15 would significantly reduce greenhouse gas emissions -- equivalent to removing approximately 3.85 million vehicles from the road. If the refiners had their way and this rule was overturned, both volatile emissions and greenhouse gas emissions would increase. EPA's E15 rule should be upheld because it is consistent with Congressional intent and the Clean Air Act, good for the environment, good for the rural communities that rely on a strong biofuels industry, and good for American drivers who want more options at the pump.”

Brian Jennings, CEO of the American Coalition of Ethanol, also issued a statement supporting EPA's regulation allowing year-round E15.

“EPA's interpretation of the Clean Air Act holding E15 to the same gasoline volatility standards as E10 is consistent with Congressional intent and reflects the realities of today's motor fuel market. EPA's ruling in 2019 cut the RVP red tape allowing more retailers to add the blend to their fuel slate and offer their customers a low carbon fuel with higher octane at a lower cost. We trust the D.C. Circuit Court will see through the oil industry's opposition to EPA's rule as a not-so-veiled attempt to cling to their status-quo market share.”