(U.S. Environmental Protection Agency) The Environmental Protection Agency is responding to requests from state governors to remove the 1-psi volatility waiver for gasoline-ethanol blends containing 10 percent ethanol in their states. The governors made their request pursuant to CAA section 211(h)(5), which provides that EPA shall remove the 1-psi waiver via regulation upon demonstration that the 1-psi waiver increases emissions in their state. After review of the emissions modeling results presented by the governors in their requests, EPA is removing the 1-psi waiver in the following states: Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin.
EPA also received multiple petitions from stakeholders requesting an extension of the effective date. This action delays the effective date to April 28, 2025, due to concerns over insufficient fuel supply with an earlier effective date, consistent with statutory provisions. This action also establishes a regulatory process by which a state may request to reinstate the 1-psi waiver.
Additional Resources
- Final Rule: Request From States for Removal of Gasoline Volatility Waiver (pdf) (483.9 KB, pre-publication, signed February 22, 2024)
- Technical Support Document and Cost Analysis (pdf) (2.6 MB, February 2024, EPA-420-R-24-002)
- Response to Comments Document (pdf) (385.2 KB, February 2024, EPA-420-R-24-003)
- Proposed Rule
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Excerpt from Minnesota Bio-Fuels Association: The Environmental Protection Agency (EPA) today approved a petition by eight midwestern governors - including Minnesota’s Gov. Tim Walz - providing for year-round E15. The rule, however, will not go into effect until April 28, 2025.
“After two years of waiting, the EPA has finally approved the permanent year-round sale of E15 in eight Midwestern states - including Minnesota. We sincerely appreciate Gov. Walz’s efforts to ensure that Minnesota was included in the petition and thank members of our congressional delegation, including Sen. Amy Klobuchar and Rep. Angie Craig, that pushed the EPA to take this action. That work has secured long-term access to a more environmentally-friendly, cheaper fuel for Minnesotans and will strengthen the economy of the state.
“While this is welcomed news, the EPA’s delay in finalizing this action means that it won’t go into effect until summer 2025, and Minnesotans won’t have access to the lowest cost fuel at the pump this summer. The EPA must now similarly act on emergency waivers this summer so that sales of E15 - and the resulting cost savings to consumers - aren’t interrupted unnecessarily,” said Brian Werner, executive director at the Minnesota Bio-Fuels Association.
In April of 2022, governors from Minnesota, Iowa, Illinois, Missouri, Nebraska, Ohio, South Dakota and Wisconsin asked the EPA to remove the 1-PSI reid vapor pressure (RVP) waiver for E10, which would eliminate the current disparity between E10 and E15 and place both fuels on equal regulatory footing in the summer months. READ MORE
Excerpt from Renewable Fuels Association: The Environmental Protection Agency's decision today to approve long-delayed petitions from eight Midwest governors allowing summertime sales of E15 is a double-edged sword for American consumers, the Renewable Fuels Association said. On one hand, the EPA decision finally allows retailers in these eight states to sell E15 year-round. But on the other hand, it delays implementation until 2025, creating uncertainty and confusion about the availability of lower-cost, lower-carbon E15 this coming summer. RFA President and CEO Geoff Cooper offered the following reaction to today’s EPA decision:
“While we are pleased to see EPA has finally approved year-round E15 in these eight states, we are extremely disappointed by the Agency’s needless decision to delay implementation until 2025. It’s helpful to finally have some certainty about 2025 and beyond, but what happens this summer? The Biden administration missed its statutory deadline to finalize the governors’ petition by more than 500 days, and now it claims there just isn’t enough time to implement the rule in time for summer 2024. Why should ethanol producers, farmers, fuel retailers, and consumers in these states be penalized for EPA’s foot-dragging and failure to meet a clear deadline? With the 2024 summer driving season just a few months away, we are urging the administration to take additional action that will ensure consumers have uninterrupted access to lower-cost, lower-carbon E15 this summer.”
Cooper also said RFA is urging Congress to adopt legislation that would resolve this issue permanently. “If Congress passed the bipartisan Nationwide Consumer and Fuel Retailer Choice Act, we wouldn’t be in this situation. But a couple of stubborn East Coast refiners and their champions in the Senate continue to put up roadblocks to enactment of this commonsense legislation that would slash emissions and reduce fuel prices for consumers. It’s time to lay aside parochial oil refiner interests and do what is right for the country.”
BACKGROUND
Nearly two years ago, eight Midwest governors used their authority under the Clean Air Act to formally petition EPA for the removal of the 1-psi volatility waiver for E10. This action would reduce emissions and permanently level the playing field for E15 in their states. By law, EPA had 90 days to approve the Governors’ petition, yet the agency did not propose approval of the petition until March 2023.
This effort has long had broad support. Bipartisan legislation to allow permanent nationwide E15 (the Consumer and Fuel Retailer Choice Act) was introduced in the House in December 2022 and in the Senate in March 2023. The current legislative vehicle, the Nationwide Consumer and Retailer Choice Act, was introduced in the Senate in August 2023, the same month when the attorneys general of Iowa and Nebraska filed a complaint in federal court regarding EPA’s failure to meet its statutory deadline. And in December, a bipartisan group of 22 members of the House and Senate called on the White House to move quickly on the governors’ petition.
In his “state of the industry” presentation Tuesday at the National Ethanol Conference, Cooper stressed the importance of this issue. “E15 will not be the stabilizing market force we need until the summertime RVP barrier is permanently removed and the fuel is available year-round. Securing RVP parity for E15 remains a top priority for RFA and we won’t stop until we’ve accomplished that mission.” READ MORE
Excerpt from Iowa Renewable Fuels Association: “Obviously we’re glad there’s a final rule implementing the governors’ action under the Clean Air Act to allow year-round sales of E15,” said IRFA Executive Director Monte Shaw. “But the last-minute delay in implementation means motorists face fewer options and higher prices at the pump this summer. This further delay is unnecessary and unjustified. During recent court filings on this topic, the Department of Justice stipulated that the governors had the power to make the requests, that the governors made the requests properly, that the governors submitted proper documentation with their requests, and that the EPA should have acted a year and a half ago. This additional delay feels like a slap in the face to Midwest motorists.”
The eight Midwest governors submitted their requests on April 28, 2022. The EPA was required by law to take action within 90 days. Defying the Congressional deadline, EPA waited until March 6, 2023, almost a year after receiving the petition, to propose approval of the request. After taking public comment, the draft rule was only sent to the OMB for inter-agency review in December of 2023.
“With the rule final, our attention now turns to both a solution to protect consumers during this summer as well as a national fix in Congress,” stated Shaw. “While our work is not done, it’s important to note that we wouldn’t have the progress today without the leadership of Iowa Governor Kim Reynolds, who organized the bipartisan group of 8 governors to exercise their authority under the Clean Air Act back in 2022. IRFA members are deeply thankful for her unrelenting work on this issue. We also want to thank Iowa Attorney General Brenna Bird who sued the EPA to protect the governors’ rights. We know they will be with us as we continue to work on a 2024 summer solution and to take this Midwest victory nationwide.” READ MORE
Excerpt from Growth Energy: “We commend EPA for finalizing its rule, and we thank the eight midwestern governors who have now successfully secured a future for year-round E15 in their states. This is a win for the residents of Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin, and a win for biofuel producers and fuel retailers.
“While this is great news, drivers will need a solution for this summer to minimize disruptions and make sure they have the same access to E15 that they’ve had for the past five summers.
“E15 saves drivers money while helping them lower their carbon emissions. We look forward to working with policymakers to ensure that consumers can have permanent access to these benefits all year long.”
About E15
E15 is a fuel blend made of gasoline and 15% bioethanol. EPA has approved its use in all cars, trucks, and sport utility vehicles (SUVs) made in model year 2001 and newer—representing more than 96% of all vehicles on the road today. E15 can be found at over 3,400 gas stations across the country and to date, Americans have driven more than 100 billion miles on this fuel blend. Last summer drivers saved an average of 15 cents per gallon by filling up with E15 compared to regular, or E10. In some areas, E15 saved drivers as much as $.60 per gallon at the pump.
Learn more about E15 here. READ MORE
Excerpt from American Coalition for Ethanol: “As the saying goes, ‘better late than never,’ but EPA had a legal responsibility to approve E15 year-round in these states more than a year and a half ago, so postponing the effective date to April 28, 2025 is disappointing,” said Brian Jennings, ACE CEO. “While we are grateful this issue will be settled in Midwest states with more than half the current E15 retail sites, our urgent priority is to find a solution for continued nationwide access to E15 this summer. The Administration rightfully exercised its authority to grant emergency waivers in 2022 and 2023, and we will be pushing for a solution covering the summer of 2024 as well.
“In addition, ACE continues to actively support bipartisan legislation in Congress, the Consumer and Fuel Retailer Choice Act, to permanently enable all Americans to benefit from the cost savings and cleaner emissions of E15. This legislation will be one of our priority issues during our March 14-15 DC fly-in.
“Finally, ACE applauds the persistence of the governors of the eight Midwest states for leading the charge on this effort, as well as Attorneys General for Iowa and Nebraska for keeping the administration’s feet to the fire.”
The governors petitioned EPA on April 28, 2022, to eliminate the 1-pound square inch (psi) Reid vapor pressure (RVP) waiver for gasoline containing 10 percent ethanol, essentially asking for E15 to be allowed year-round in their states. By law, the Agency was required to act by July 27, 2022, but didn’t issue a proposed rule to allow E15 year-round in the states until March 6, 2023. The Attorneys General for Iowa and Nebraska sued EPA over its delay on August 7, 2023, in U.S. District Court for the Southern District of Iowa. EPA’s rule was submitted to the White House Office of Management and Budget in December of 2023 for inter-agency review. Today’s decision permanently approved E15 year-round in the eight states but delays implementation to April 28, 2025. READ MORE
Excerpt from InForum: North Dakota Gov. Doug Burgum was among the original signers of a 2022 letter to the EPA requesting year-round E15 sales but the state pulled out of the request months later.
...
North Dakota Gov. Doug Burgum was among the original signers of the April 28, 2022, letter to Environmental Protection Agency Administrator Michael Regan requesting sales of E15 be allowed during the summer months.
...
However, North Dakota decided to leave the effort in October 2022.
"We changed our approach and advocated for a national solution instead," said Mike Nowatzki, a spokesperson for Burgum, in an email.
...
On Friday, North Dakota Corn Growers Association Andrew Mauch, who farms near Mooreton, expressed his organization's mixed feelings about the Thursday EPA announcement.
“We applaud the EPA granting the eight Midwest state governors their request to offer year-round E15 in their states," he said. "It is unfortunate that our state's governor, who was part of the initial request, ... rescinded, because we would have been included in this week's announcement."
The Oct. 12, 2022, letter from Burgum to Regan said North Dakota was withdrawing its request because of "unintended effects, including higher production and distribution costs."
...
Burgum's letter said North Dakota urged "industry leaders, along with state and federal partners" to work together on a national solution.
North Dakota is ranked third in the nation in crude oil reserves and production, according to the Energy Information Administration , behind Texas and New Mexico. The EIA says the state also is in the top 10 for ethanol production, and its six ethanol plants account for about 3.5% of the nation's ethanol output. The state ranked 11th in corn production for grain in 2022.
...
“If Congress passed the bipartisan Nationwide Consumer and Fuel Retailer Choice Act, we wouldn’t be in this situation. But a couple of stubborn East Coast refiners and their champions in the Senate continue to put up roadblocks to enactment of this commonsense legislation that would slash emissions and reduce fuel prices for consumers,” Renewable Fuels Association President and CEO Geoff Cooper said in a statement. READ MORE
Excerpt from Iowa Capital Dispatch: But Monte Shaw, executive director of the Iowa Renewable Fuels Association, which advocates for the ethanol industry, said those estimates are inflated and there won’t be a noticeable difference in fuel prices as a result of the rule change.
“Their claim that this is going to jack up gas prices in a notable way is, we think, completely nuts,” Shaw said.
He estimated the cost to the refineries might be up to 2 cents per gallon, and that the additional cost would not be passed along to consumers.
Shaw blames the refineries for the extra costs because of their resistance to extending the E10 waiver to E15. That is what the EPA did in 2019, but the action was overturned in 2021 by a lawsuit filed by the American Fuel & Petrochemical Manufacturers Association, a trade group that represents fuel suppliers.
The EPA has issued emergency waivers for summertime E15 sales in each year since and is expected to do so again this year before the new rule takes effect for 2025.
Shaw said the easiest path forward is for federal lawmakers to give a permanent waiver to E15, which would eliminate the need for refineries to adjust the gasoline that is used for the ethanol blends. Either way, he predicted that the year-round sales of E15 will lead to it becoming the dominant fuel that is sold in Iowa. READ MORE
Excerpt from Siouxland Proud: Iowa and Nebraska lawmakers have released statements on the EPA’s decision.
Sen. Chuck Grassley of Iowa
I applaud Governor Reynolds’ persistent advocacy for ethanol producers across the heartland. Those efforts paid off today. I’ll be glad to see expanded market opportunities for Iowa farmers, but as of now, that won’t be soon enough.
While the EPA was correct to unleash year-round E-15, in typical bureaucratic fashion, it couldn’t help but attach a few strings. Delaying the effective date until 2025 is an unnecessary setback for producers and drivers. The agency has lifted summer E-15 suspensions in the past, and I’ll be pressing them to do the same this season.
SEN. CHUCK GRASSLEY ON TWITTER
Rep. Zach Nunn of Iowa’s 3rd Congressional District
The EPA just approved @IAGovernor request for year-round E15 but they’re stalling implementation until 2025. This leaves Iowan’s with fewer choices at the pump & hurts Iowa’s biofuel producers. I’ll keep fighting to bring year-round E15 for Iowans and our entire country this year
REP. ZACH NUNN ON TWITTER
Rep. Mariannette Miller-Meeks of Iowa’s 2nd Congressional District
I applaud the EPA’s decision to finally listen to Iowa’s requests to allow for the voluntary summertime sale of E15. This decision is critical to ensuring consumers have access to consistently available lower cost and lower emissions fuel during the summer months. However, this decision has been long overdue and the implementation date of April 28, 2025 continues to place these 8 states in uncertainty this summer, leading to higher gas costs. Following this action, I am hopeful Congress will act swiftly to pass a permanent solution to allow the voluntary sale of E15 year-round sales nationwide.
REP. MARIANNETTE MILLER-MEEKS ON TWITTER
Rep. Ashley Hinson of Iowa’s 1st Congressional District
(1/2) While I’m encouraged the EPA has approved @IAGovernor’s request for year-round E15, the Administration’s decision to delay implementation until 2025 threatens to undermine our biofuels producers and leave Iowa drivers with fewer choices at the pump this summer.
(2/2) I’ll continue fighting for Iowans to have access to E15 this summer & will work to reach a final agreement on a nationwide solution to permanently allow the sale of E15 year-round.
REP. ASHLEY HINSON ON TWITTER
Iowa Gov. Kim Reynolds
After continuous delays by the EPA to allow year-round sales of E15 fuel, consumers across the country can finally look forward to lower-cost, cleaner-burning year-round E15 in 2025. Nearly two years ago, I organized a bipartisan coalition of eight Midwest governors to join me in challenging the EPA’s refusal to allow E15 sales during summer months. Finally, our request is approved, however, the EPA’s unjustified delays come at a cost for drivers and the environment.
As governor of the nation’s top ethanol producing state, I’m pursuing a waiver to continue offering drivers the option to purchase lower-cost, cleaner-burning E15 in Iowa this summer, and I won’t stop fighting for year-round E15 until it’s available nationwide. The solution to making America energy independent is growing in the Heartland. Iowa Gov. Reynolds
Sen. Deb Fischer of Nebraska
While I appreciate that the EPA has finally approved the year-round availability of E-15, the limited geography and needless delay until 2025 still complicates its sale. Congress must pass my legislation that will at last provide a nationwide, permanent solution for the sale of this blend that benefits consumers, producers, and the environment.
REP. DEB FISCHER
Sen. Pete Ricketts of Nebraska
Today’s announcement is a welcome step toward year-round availability of E-15. Higher blend ethanol saves consumers money at the pump, it makes us more energy independent, and it creates good-paying jobs right here in Nebraska. The next step is for Congress to pass legislation allowing for the permanent sale of E-15 nationwide.
SEN. PETE RICKETTS VIA EMAIL
Rep. Mike Flood of Nebraska’s 1st District
While I am pleased that the EPA granted the governors’ request, this announcement still falls short of year-round E15 for all and delays implementation until 2025. E15 has had proven benefits for years, and it’s time to tear down remaining regulatory barriers, so every American can access this affordable fuel that helps clean up our air while growing our rural communities. If the Biden administration isn’t going to find a way to get this done, Congress must act to deliver year-round E15 for all Americans.
REP. MIKE FLOOD
Sen. Joni Ernst of Iowa
Finally, after years of advocacy, the EPA’s final rule will allow for eventual E15 sales year-round to give consumers a cleaner, cheaper choice at the pump. While I welcome this long overdue decision and applaud the work of Governor Kim Reynolds and Attorney General Brenna Bird, pushing off implementation until 2025 fails to provide our Iowa farmers, consumers, and retailers with certainty as we approach the 2024 summer driving season. I will continue to pressure the EPA for a nationwide, permanent solution, so Iowans do not have to pay needlessly high prices for fuel.
SEN. JONI ERNST
Rep. Adrian Smith of Nebraska’s 3rd District
Although year-round sale of E-15 is welcome news for midwestern consumers looking for more options and price relief at the pump, it remains clear that we need a permanent solution to allow the year-round sale of E-15 nationwide. Farmers, ethanol and petroleum producers, retailers, and consumers need long-term certainty which the U.S. Supreme Court has said can only come through legislation, and I will continue to work to codify uninterrupted, nationwide E-15 through the bipartisan Consumer and Fuel Retailer Choice Act and urge President Biden to fully support this commonsense policy.
REP. ADRIAN SMITH
Excerpt from Delaware Valley Journal: As RINs prices climb higher and higher, more independent refiners will have to shut their doors for good. The good-paying union jobs at these facilities that tens of thousands of families rely on will disappear. If President Biden allows this, he’ll have broken his promise of standing with union workers. But he doesn’t have to do this. His administration can balance year-round E15 sales with a permanent solution to rising RFS costs.
Luckily for President Biden, a permanent solution already exists in Congress. The authors of a bill titled the “Safeguarding Domestic Energy Production and Independence Act of 2023” (HR 4576) want to keep RINs at a fixed price. With a fixed price RIN, independent refiners wouldn’t have to worry about RINs becoming wildly expensive overnight, whether from higher ethanol blending rates or manipulation from Wall Street traders.
By making sure this bill is attached to any law mandating year-round E15 sales, Congress and President Biden could help independent refiners and Big Ethanol find a middle ground without leaving union workers in the cold. Big Ethanol gets what it wants in year-round E15 sales, and independent refiners get what they need: an end to rising RINs costs threatening their businesses. A win-win solution that doesn’t result in President Biden breaking his promise to be “the most pro-union president in history.” READ MORE
Excerpt from Brownfield Ag News: U.S. Congresswoman Ashley Hinson says legislation like the Consumer and Fuel Retailer Choice Act would allow for ethanol blends 10% or higher to be sold year-round.
“I will continue to push for it. I think our main priority in Congress right now is getting that farm bill done. As we’re having conversations about getting the farm bill to the floor, maybe having a separate conversation about access to choice for consumers and making sure we’re continuing to provide that stable market and certainty.”
The Iowa Republican tells Brownfield she opposes the Biden administration’s electric vehicle mandates and says EVs aren’t the only answer. “If someone wants to buy an EV, they should be able to do that,” she said, “but the Biden administration should not force families to buy these.”
The Consumer and Fuel Retailer Choice Act has been supported by numerous biofuel groups, including Growth Energy and the Renewable Fuels Association. READ MORE
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