The U.S. Environmental Protection Agency said Wednesday it will propose a rule allowing sales of gasoline with a higher ethanol blend in some Midwest states, starting with the summer 2024 driving season.
Some governors from corn-producing Midwestern states had asked the EPA to stop giving conventional E10 gasoline a partial waiver from volatility limits meant to curb air pollution, a move that would place E10 and E15 fuel on the same regulatory footing in their states and potentially encourage more sales of the higher-ethanol variety.
Proponents of the EPA's proposal believe higher E15 supply will ease pump prices and help farmers; an oil trade group representing refiners said implementing a new fuel blend could create problems including leaving the Midwest region with tighter fuel supplies during the peak summer driving season.
"Not every refinery, pipeline and terminal serving the Midwest has the ability to seamlessly produce, transport and store a new blend of gasoline, and it could take years to permit and complete infrastructure projects to resolve this," the American Fuel and Petrochemical Manufacturers said.
The Renewable Fuels Association said the biofuels industry is "frustrated and disappointed that the agency is proposing to kick the can on implementation until 2024," and the marketplace would have had "more than enough time to adjust and prepare for implementation this summer" if the Biden administration had responded to the governors' petition last year.
The Biden administration already moved to waive E15 from summer volatility requirements last year, allowing its sale in an attempt to cut gasoline prices.
Iowa Secretary of Agriculture Mike Naig said, "Despite delays from the EPA, I appreciate the strong advocacy by Gov. Reynolds and other Midwest governors to push the Biden Administration into finally approving a permanent solution to allow the sale of year-round E15. Iowa is ready to significantly accelerate our state's use and availability of E15 today. Unfortunately, the Biden Administration is needlessly and unnecessarily stalling the start of this rule until 2024. Unless President Biden changes course to allow summer sales of E15 this year, Iowans can expect fewer fuel choices and higher gas prices at the pump."
Iowa Gov. Reynolds said, “While long overdue, I am thrilled that the EPA has approved our multi-state bipartisan RVP waiver request that will pave the way for year-round E15 and bring certainty to the industry. However, the arbitrary delay in implementation this summer is unacceptable and disappointing, but hardly surprising. Iowa won’t accept it without a fight. I look forward to requesting another emergency waiver for this year while at the same time asking the courts to require the Administration to grant our request immediately. Iowans, and all Americans, deserve immediate access to lower-cost, American made E15.”
Reynolds will address the National Ethanol Conference in Orlando, Fla., today.
Categories: Iowa, Energy, Nebraska, Energy