When I asked Ohio farmer Jed Bower, the new president of the National Corn Growers Association, about his organization’s top priority, his response was immediate: “farmer profitability.”
With record corn harvests weighing on prices and creating economic pressure across rural America, we have a proven solution sitting right in front of us — yet we continue to let outdated regulations stand in the way.
Year-round sales of E15, gasoline blended with 15% ethanol, could inject $25.8 billion into the U.S. economy and support 128,000 jobs, according to a new study by NCGA and the Renewable Fuels Association. More importantly for struggling farmers, it would absorb surplus corn production and lift the ethanol industry’s total economic impact to $88 billion.
So what’s the holdup?
Outdated regulatory relic
The main barrier is a provision in the Clean Air Act that prohibits E15 sales during summer months from June 1 to Sept. 15 due to concerns about fuel volatility and smog formation. This restriction is not only outdated but also scientifically questionable. E15 actually has lower evaporative emissions than E10 in some tests, according to the biofuel trade association Growth Energy. However, the Reid vapor pressure waiver that allowed year-round E10 sales was never extended to higher blends.
While EPA issued emergency waivers for nationwide year-round E15 sales in April and gave final approval for permanent sales to seven Midwest states (Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin), we need a comprehensive legislative fix to remove this summertime restriction nationwide once and for all.
While we debate incremental changes, other countries are racing ahead. Brazil mandates E30, nearly double what we’re proposing. India reached E20 by 2025, five years ahead of its target date. Even Thailand has introduced E20 and E85 options.
The United States, despite being the world’s largest ethanol producer, maintains conservative E10 blending standards that fail to capitalize on our production capacity or address agricultural surplus.
Overcoming industry resistance
Some petroleum industry segments continue to resist higher ethanol blends, citing engine compatibility concerns despite manufacturer approvals for E15 use in vehicles 2001 and newer. Meanwhile, onerous labeling and underground tank requirements have made it difficult for retailers to offer E15, creating barriers to market expansion.
These obstacles are surmountable with proper policy support and industry collaboration. The infrastructure investment required for compatible fuel-dispensing equipment pales in comparison to the economic benefits E15 expansion would generate.
Ethanol producers, retailers and automakers must work together to streamline implementation, and we need a coordinated campaign to inform drivers about E15 compatibility and benefits.
E15 expansion represents a rare policy opportunity that simultaneously addresses multiple challenges: agricultural surplus, rural economic development, energy security and environmental goals. With corn overproduction creating financial stress for farmers and proven economic benefits from ethanol expansion, the question isn’t whether we should move forward, it’s why we haven’t already.