Exclusive: Biden Administration to Approve E15 Gasoline Expansion Starting in 2025, Sources Say

by Jarrett Renshaw and Stephanie Kelly (Reuters) The White House will approve a request from a group of Midwest governors to allow year-round sales of gasoline with higher blends of ethanol, but will push the start date into next year, two sources familiar with discussions said.

The decision will likely be bittersweet for the biofuel industry, which wants to expand sales of corn-based ethanol but might be frustrated by the 2025 start date. The one-year delay could put off any potential localized price spikes and supply issues that the oil industry says could arise from the decision until after the U.S. election, the sources said.

Under the plan, the administration would grant a 2022 request from the governors of Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin to allow year-round sales of E15, or gasoline with 15% ethanol, starting next year, the sources said. In the meantime, the EPA could issue a temporary waiver enabling such sales as needed.

Wisconsin and Minnesota are battleground states in this year's presidential contest in November. Inflation and the economy are key vulnerabilities for President Joe Biden's re-election campaign.

The U.S. government restricts sales of E15 gasoline in summer months due to environmental concerns over smog.

The administration is expected to issue a decision by late March, the sources said.

The EPA declined to comment for this article, as the rule is still in an interagency review process.

U.S. Agriculture Secretary Tom Vilsack said at a conference on Tuesday he was confident that expanded sales of E15 would be available across the country in 2025 and that, until then, the administration would likely issue temporary waivers this summer to enable sales.

The EPA had sent a final rule on the proposal to the White House in December with an effective date of April 28, 2024. The new timeline would push the effective date to 2025, the sources said.

For years the ethanol industry has pushed to lift the restrictions on E15 sales nationwide, arguing the environmental impacts have been overstated.

The request from the Midwestern states has been controversial, however, as oil refiners including HF Sinclair Corp (DINO.N), and Phillips 66 (PSX.N),, have warned that a patchwork approach to approving E15 sales would complicate fuel supply logistics and raise the risk of spot shortages.

Ethanol groups say they would prefer a nationwide legislative fix to allow for expanded E15 sales, versus the regional approach. READ MORE

Excerpt from Brownfield Ag News: Ag Secretary Tom Vilsack says he’s confident year-round E15 is coming in 2025 and waivers should be granted to allow E15 for the upcoming summer driving season.

Vilsack told reporters it will take time for the Environmental Protection Agency to finalize the rule, making E15 available nationwide.

“I think it’s important to have the justification for the expansion locked down solid so if there are any concerns expressed about it, as often the oil industry provides, we’re in a position to defend this as strongly as we can.”

In 2022, eight state governors in the Midwest petitioned the EPA to allow E15 sold year-round, but the EPA has been slow to respond. Renewable Fuels Association President and CEO Geoff Cooper tells Brownfield the EPA has waited a long enough to move forward and the ethanol market is looking for certainty on how this will unfold.

“Even knowing those eight states will have permanent ability to sell E15 year-round starting next summer, it needs to come with the assurance retailers will be able to sell E15 this summer as well.”

Cooper says the U.S. ethanol industry is going to be watching closely to ensure the Biden administration grants summertime waivers this year, exempting the 15% ethanol blended fuel from Reid Vapor Pressure requirements under the Clean Air Act. READ MORE

Excerpt from DTN Progressive Farmer: Earlier in the day an ethanol industry official said the administration needs to act.

"By law, EPA had 90 days to approve," said Geoff Cooper, president and CEO of the Renewable Fuels Association. Cooper made his remarks as part of a speech on the state of the industry to start the day.

"Just a few months away from summer and no one in these Midwest states know whether they'll have it available. We're calling on EPA to immediately act on it, so governors in these states can move forward."

On April 28, 2022, governors in eight states requested a change allowed by the Clean Air Act to reject the use of the 1-psi waiver for E10, a 10% ethanol-blended gasoline. The action would clear the way for permanent, year-round E15 sales in the states.

Cooper said allowing E15 year-round in the eight states would reduce emissions and "level the playing field" for E15.

The rule would result in applying the same volatility limitation to both E15 and E10 -- essentially putting E10 and E15 on the same footing in those states.

The ethanol industry could overcome E15 fits and starts once and for all, Cooper said, if Congress passes legislation to make year-round availability permanent across the country.

Sens. Amy Klobuchar, D-Minn., and Deb Fischer, R-Neb., in March 2023 reintroduced the Consumer and Fuel Retailer Choice Act of 2023. READ MORE