RFA Applauds Midwest Governors for Proactively Pursuing Year-Round E15 Fix

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November 04, 2021

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(Renewable Fuels Association) The Renewable Fuels Association today thanked a bipartisan group of seven Midwestern governors for their efforts to explore what actions can be taken to allow the year-round sale of E15 in their states.

In a letter sent to EPA Administrator Michael Regan today, the governors seek guidance from the agency on how best to pursue a specific provision of the Clean Air Act that allows states to establish a “level playing field” for E15. The governors’ letter follows a recent D.C. Circuit Court decision that found in favor of oil refiners and overturned EPA’s 2019 regulation that finally allowed the year-round sale of E15 in conventional gasoline markets.

“In the wake of the court decision, we are exploring all of our options to ensure retailers are able to sell E15 to consumers all year long without interruption,” the letter states. “Fuel marketers and retailers, renewable fuel producers, the U.S. Department of Agriculture, and state governments have invested hundreds of millions of dollars in recent years to expand consumer access to low-cost, clean-burning fuels like E15. Not only does the recent court decision threaten to strand these public and private investments, but it also jeopardizes the progress we’ve made toward cleaning up our fuel supply and reducing emissions from transportation.”

Commenting on the letter, RFA President and CEO Geoff Cooper said, “We sincerely appreciate the efforts of these governors to protect and expand market opportunities for the region’s farmers and ethanol producers. The governors should be applauded for working together to proactively seek solutions at the state level, rather than waiting for Washington to clean up yet another regulatory mess created by the oil industry. Ethanol producers and farmers stand with these governors, and we will leave no stone unturned in our pursuit of an open and competitive marketplace for E15 and other lower-cost, lower-carbon ethanol blends. We encourage EPA to expeditiously respond to the governors and open the dialog needed to remove the outdated and absurd regulatory barrier to summertime sales of E15 in these states.”

Governors signing the letter were Kim Reynolds (R-Iowa), Pete Ricketts (R-Nebraska), Tim Walz (D-Minnesota), Tony Evers (D-Wisconsin), Doug Burgum (R-North Dakota), Kristi Noem (R-South Dakota), and Mike Parson (R-Missouri). In addition, Gov. Laura Kelly (D-Kansas) sent a similar letter to EPA in recent weeks. This bloc of eight contiguous states consumes approximately 13 billion gallons of gasoline annually. A universal move from E10 to E15 across these states would expand ethanol consumption by nearly 700 million gallons and boost corn demand by 225 million bushels. READ MORE

Seven Governors Want New E15 Rulemaking (DTN Progressive Farmer)

BIOFUELS GROUPS APPLAUD GOVERNOR INQUIRY INTO STATE SOLUTION FOR YEAR-ROUND E15 (Brownfield Ag News)

Midwest Governors Call for E-15 solution (Energy.AgWired.com)

Iowa politicians demand federal action on biofuels (The Center Square)

Iowa's Kim Reynolds, six other Midwestern governors take step in getting waivers for year-round E15 use (Des Moines Register)

U.S. governors explore state-level way to expand biofuel sales (Reuters)

Midwestern Governors Seek EPA Action To Bypass D.C. Circuit E15 Ruling (Inside EPA)

Thanks for working on our behalf, Gov. Reynolds: Letter (Globe Gazette)

Governors Look to Expand Biofuel Sales (WOWO)

Finding solutions to year-round E15 in the US (Biofuels International)

OTHER VOICES: Treat E10 and E15 ethanol blends equally (Sioux City Journal)

Excerpt from The Center Square: “Section 211(h)(5) of the Act establishes that upon the request from the Governor of a State, the Administrator shall apply volatility limitations to gasoline-ethanol blends that exclude the benefit of the 1-pound per square inch (psi) Reid vapor pressure (RVP) waiver provided to E10 in Section 211(h)(4). If approved, it is our understanding that such a request would result in a volatility limitation of 9 psi for both E10 and E15 in conventional gasoline areas, thereby establishing a level playing field and allowing retailers to use the same gasoline blendstock for both blends all year long. We understand that some states have already requested, and secured approval, of such action by the Administrator, meaning the recent court decision will not impact the ability of retailers in their states to sell E15 year-round.”

Regan would have 90 days to make those regulations if they made the request.

“Thus, if we were to submit a request for exclusion from the 1-psi ethanol waiver this summer or fall, it is our understanding that the Administrator could promulgate rules acting on the request well before the 2022 summer high ozone season,”

The letter from the governors follows one from U.S. senators, including Iowa's two Republicans, Sens. Chuck Grassley and Joni Ernst, in which they asked again to meet with President Joe Biden, his Cabinet and other high-ranking Democrats to discuss biofuels, particularly in light of rising energy prices.

They said in the letter that increasing access to affordable, reliable sources of energy requires responsible resource development and innovation.

“American biofuels represent both, and as we outlined in our previous letter, they hold the proven ability to provide consumers broad choices for cleaner and more affordable energy,” the letter said. “These contributions would expand with timely action by your administration.”

In an Oct. 18 letter to U.S. Department of Agriculture Secretary Tom Vilsack, Grassley and Ernst demanded to know when $700 million in aid for the biofuel producers that had been announced in a June 15 news release would become available. The release said the aid would be distributed within 60 days through the Pandemic Assistance for Producers initiative.

Urban Air Initiative, along with several other groups, asked the U.S. Supreme Court in an Oct. 25 brief to review the D.C. Circuit Court’s decision, Ethanol Producer Magazine reported. Following the EPA’s 2019 decision, the American Fuel and Petroleum Manufacturers asked the D.C. Circuit Court of Appeals to review the decision. In July 2021, the court overturned the EPA’s decision, claiming the 1-psi waiver for E-15 exceeds its authority under U.S. code. READ MORE

Excerpt from Globe Gazette: Due to an oil industry lawsuit, come June 1 of next year the sale of E15 will be stopped unless immediate action is taken. Fortunately, Gov. Kim Reynolds is working on behalf of biofuel producers like me, and all Iowans to ensure that E15 will be available year-round before the June 1 deadline.

Because of the refinery lawsuit, right now E10 (10% ethanol) and E15 (15% ethanol) have different volatility regulations. Not surprisingly, the refiners only provide gasoline that will accommodate E10. They freeze E15 out of the market, reducing demand for Iowa-made ethanol. That’s not right. Drivers deserve to have access to a fuel that saves them money, is better for their engines, supports Iowa jobs, and reduces emissions.

With billions of gallons of total American ethanol capacity, ethanol plants like Golden Grain Energy are more than ready to meet the higher demand that would be unleashed if E15 were available year-round nationwide. While I still hope for a national solution from Congress or the EPA, there’s no sign that D.C. will fix this problem in time. But governors have the option under the Clean Air Act to request E10 and E15 be regulated equally. This would mean any gasoline the oil refiners send up the pipeline to Iowa could be blended to produce E10 or E15 all year. This week a bipartisan group of seven Midwest governors, led by Governor Reynolds, sent a letter to EPA signaling interest in taking this action. READ MORE