The Environmental Protection Agency’s long-awaited action on a looming petition that would authorize the year-round sale of higher ethanol blends came Thursday, but with a caveat that frustrated the biofuels industry.
The EPA approved a petition from eight Midwest governors that would allow E15 — a gasoline blend with 15% ethanol — to be sold throughout the year, eliminating a summertime ban written into the Clean Air Act. But the agency said the change will not take effect this summer, pointing to “concerns over insufficient fuel supply with an earlier effective date.”
The change is scheduled to take effect in eight states: Illinois, Iowa, Nebraska, Minnesota, Missouri, Ohio, South Dakota, and Wisconsin.
In a statement, Iowa Gov. Kim Reynolds welcomed the news but criticized EPA for its delay.
“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. Finally, our request is approved, however, the EPA's unjustified delays come at a cost for drivers and the environment.”
South Dakota Gov. Kristi Noem shared the news on social media and said EPA “didn't need to delay until 2025 to make this happen. If they did it TODAY, gas prices would start dropping immediately as more E15 become available.”
The decision leaves E15 sales for the summer of 2024 in question; Ag Secretary Tom Vilsack said earlier this week he expected the temporary action EPA took to allow the sale of the fuel in the summers of 2022 and 2023 could happen again this year.
Reynolds said she was “pursuing a waiver to continue offering drivers the option” to purchase E15 in Iowa this summer.
Renewable Fuels Association President and CEO Geoff Cooper called the delay “needless.” He said between EPA action and White House interagency review, the Biden administration was more than 500 days past its statutory deadline for action on the petition, “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?” Cooper asked. “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.”
Under the Clean Air Act, states are allowed to petition for exemptions from certain fuel volatility standards like those that bar the sale of summertime E15. Leaders of several states did just that in 2022, and the EPA proposed an approval last year that would have allowed sales to begin in 2024.
“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,” Growth Energy CEO Emily Skor said in a statement. “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.”
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With the continued regulatory uncertainty surrounding the issue — including a Trump administration move that was struck down in the courts — the industry has also looked to Capitol Hill for a legislative fix. Those efforts have been bolstered by action on the petition and the concerns of oil refiners that its granting could create a “boutique market” in the Midwest, putting oil and biofuel interests both in favor of a nationwide solution.
Sen. Deb Fischer, R-Neb., has introduced several bills on the subject, including last year’s legislation that also included Sen. Shelley Moore Capito, R-W.Va., the top Republican on the chamber’s Environment and Public Works Committee. But the bill notably lacks the support of Chairman Tom Carper, D-Del., whose backing would be critical for the bill’s floor consideration.
Fischer used the occasion to call for congressional consideration of her bill to write the E15 waiver into law.
“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,” she said. “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.”
An EPA official said the agency "cannot speculate about the 2024 summer driving season." However, officials there will "continue to monitor the situation, consult closely with the Department of Energy, and be prepared to act should conditions warrant."
Story updated to include additional comment from Govs. Reynolds and Noem as well as EPA.
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