With year-round E-15 legislation still stalled in Congress, the Environmental Protection Agency has once again issued a waiver to allow summer sales this year. The agency also issued a second waiver suspending all federal and state regulations limiting the sale of E10, fuel blended with 10% ethanol.
“EPA is working with our federal partners to reduce unnecessary costs and uncertainty and ensure that gas prices remain affordable for all Americans through the summer,” EPA Administrator Lee Zeldin said when announcing the decision. “This emergency action will provide American families with relief by increasing fuel supply and consumer choice.”
Why so many waivers?
Summer sales of fuels blended with 15% ethanol are banned in about half the states due to air quality concerns. Ethanol advocates argue studies showing E15 increases air pollution in summer are outdated. They argue more recent data suggests minimal climate impacts of E15 compared to normal gasoline.
While many farm-state lawmakers have vowed to pass legislation authorizing year-round sales, no bills have made their way through Congress thus far. A farm bill draft passed by the House Agriculture Committee earlier in March notably did not include year-round E15 legislation. Still, there is some hope among ethanol supporters that a Senate farm bill expected later this year will include year-round E15.
Permanent solution sought
American Farm Bureau Federation President Zippy Duvall said there is now increased urgency to pass permanent E15 legislation. While grateful for EPA’s latest waiver, he said “the time is now” to make E15 availability permanent. According to him, biofuels are a win-win for farmers and drivers.
“E15 gasoline saves consumers 10 to 30 cents per gallon at the pump and creates markets for American-grown crops,” Duvall said in a March 25 statement. “Permanent sales of E15 blends would increase demand for corn by roughly 2.4 billion bushels a year.”
As he sees it, year-round E15 is a bipartisan opportunity for Congress to work together for the benefit of farmers and rural communities. Duvall thanked Senate Ag Committee Ranking Member Amy Klobuchar, D-Minn., and Chair John Boozman, R-Ark., for working to advance the legislation.
American Coalition for Ethanol CEO Brian Jennings said if there were ever justifiable conditions to merit an emergency E15 waiver, it would be now with prices skyrocketing due to the war in Iran. He added that those current oil market disruptions only underscore the urgency of permanent E15 legislation. Jennings urged congress to pass the Nationwide Consumer and Fuel Retailer Choice Act to provide more affordable fuel.
“Enactment of E15 legislation has recently been held hostage by a handful of small and midsized oil refiners trying to line their pockets at the expense of American consumers and farmers,” Jennings said on March 25. “Instead of letting these disingenuous concerns by a small subset of refiners — some whom are Fortune 500 companies — stall action, Congress should stand with the supermajority of oil refiners who have united with agriculture, biofuel and fuel retail groups in favor of bipartisan action from Congress on year-round E15.”