U.S. Governors Seek to Expand Sales of Higher-Ethanol Gasoline Blend

April 29, 2022

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by Stephanie Kelly (Reuters) U.S. governors from eight Midwest states, many of which are major corn producers, asked the Biden administration on Thursday to apply rules that would allow gasoline blended with a higher level of ethanol to be sold year-round in their states.

Governors from Iowa, Illinois and Minnesota said in a letter to the Environmental Protection Agency that allowing the blend, known as E15, year-round would help lower gasoline prices, which have risen to over $4 per gallon after Russia's invasion of Ukraine.

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Under the Clean Air Act, governors can ask the EPA to put the specifications for volatility of E15 and E10 on equal footing. The Midwest governors told the EPA on Thursday that they are pursuing this route to enable year-round E15 sales.

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The states involved in Thursday's action are home to 57% of the nation's 2,512 stations currently selling E15, the RFA said. READ MORE

MIDWEST GOVERNORS TAKE ACTION TOWARD PERMANENT YEAR-ROUND E15 SALES (Brownfield Ag News; includes AUDIO)

Eight States Petition EPA on E15 Change: Midwestern Governors Petition EPA to Allow E15 Permanently, Eliminate Summer Fuel Waiver (DTN Progressive Farmer)

ETHANOL PRODUCERS APPLAUD GOVERNORS’ YEAR-ROUND E15 MOVE (Brownfield Ag News)

Bankers not optimistic about Biden's ethanol waiver; Rural Mainstreet survey still positive (Bismark Tribune)

RFA Thanks Midwest Governors for Taking Action to Allow Year-Round E15 (Renewable Fuels Association)

Growth Energy Supports Governors’ Efforts to Secure Permanent, Year-Round Access to E15 (Growth Energy)

New survey shows most South Dakotans view ethanol as critical to economic growth, agriculture and the environment (DRG News)

Ethanol Report 4-29-22: E15 Action & Energy Analysis (Energy.AgWired.com)

Midwestern governors seek permanent E15 waivers (Inside EPA)

Northey Promotes E-15 Ethanol (WNAX; includes AUDIO)

Midwest governors push for regional, year-around E15 sales (Agri-Pulse)

Grassley says Midwest-only boost for E15 falls short -- Sen. Chuck Grassley (R-Iowa) said a move by Midwest governors to make higher-ethanol fuel available year-round in their states isn't the national solution he's seeking. (E&E News)

Governor Reynolds joins midwestern governors on biofuels push (KIWA Radio)

HOUSE BIOFUELS CAUCUS MEMBER SUPPORTIVE OF GOVERNORS’ YEAR-ROUND E15 APPROACH (Brownfield Ag News)

Excerpt from Brownfield Ag News: He (Renewable Fuels Association CEO Geoff Cooper) says there is a one-year waiting period before the change is effective, so it would be summer of 2023 before the states are allowed to permanently sell E15 year-round. But Cooper says that’s ok because a federal emergency waiver has already been announced for 2022.

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The governors, including Kim Reynolds of Iowa, Pete Ricketts of Nebraska, JB Pritzker of Illinois, Laura Kelly of Kansas, Tim Walz of Minnesota, Doug Burgum of North Dakota, Kristi Noem of South Dakota and Tony Evers of Wisconsin sent the letter to EPA Administrator Michael Regan on Thursday.

Cooper says the governors have been working together on this issue since the DC Circuit Court overturned the EPA last year, putting the summertime E15 barrier back up – and RFA is pleased with the bipartisan effort.

“You had four republicans and four democrats working together with the spirit of improving the economy and environment in their states. That was very encouraging to see and we were happy to support those efforts.”

Cooper says 70% of the nations ethanol and corn are produced in those eight states, so it makes sense for them to lead this effort, but he hopes some other states will choose to join the group moving forward. READ MORE

Excerpt from DTN Progressive Farmer: This would compel fuel suppliers to reduce RVP of CBOB, a common grade of gasoline produced by refiners in the U.S., from 8.8 to 7.8 psi. The Clean Air Act requires governors to show such action would benefit air quality in their states.

As part of the application, the states provided the results of a study conducted by Ecoengineering Inc., which showed all states would improve air quality by eliminating the 1-psi waiver.

"The emissions benefits of lowering gasoline vapor pressure by 1-psi were modeled for each of our states," the governors said in the letter to Regan.

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"The analysis concluded that a 1-psi RVP reduction would be beneficial to air quality, as emissions of carbon monoxide, oxides of nitrogen and volatile organic compounds would be reduced. We urge swift action to help lower fuel prices across the country, restore energy independence, and increase consumer access to our nation's homegrown biofuels."

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Cooper said recent research conducted by the refining sector showed the action sought by the governors would increase gasoline production costs by just 1.5 cents per gallon or less in the Midwest.

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Also, this week the Iowa Legislature passed a bill that will require E15 to be offered across Iowa by 2026 and set a 9-cent, per-gallon E15 promotion tax credit through 2025.

Read the governors' letter here: https://ethanolrfa.org/…