EPA to Implement Year-Round E15 Ethanol Sales in the Midwest
The U.S. Environmental Protection Agency (EPA) is moving forward with its plan to allow year-round sales of E15 (which contains 15% ethanol) starting April 28, 2025. This decision aims to create parity between E15 and the more commonly used E10 (10% ethanol) fuel blends, particularly in the Midwest. It also responds to requests from governors representing eight states, including Illinois, Iowa, and Wisconsin, and seeks to provide regulatory clarity for fuel suppliers.
Background on E15 Implementation
This initiative was first announced in February 2023 during the Biden administration’s vow to make E15 available year-round. The shift is expected to expand consumer access to E15 in the Midwest, where the demand for this type of fuel is significant due to the regional production of ethanol from corn. Approximately 40% of U.S. corn production is utilized for ethanol production, contributing to cleaner-burning fuels with higher octane ratings, essential for modern high-compression engines.
To support this transition, the EPA is also open to considering requests from states like Ohio, which have expressed a desire for a one-year extension to prepare for the new regulations.
Legislative Efforts
In addition to the EPA’s actions, a bipartisan group of U.S. senators has reintroduced a bill aiming to allow nationwide sales of E15. In light of the potential for supply disruptions and price volatility, the EPA has indicated its willingness to issue emergency fuel waivers under the Clean Air Act as necessary.
Industry Perspectives
The American Petroleum Institute (API) has voiced its support for a unified national approach toward higher ethanol blends. API’s Vice President Will Hupman emphasized the importance of preventing fragmented policies across states, which could lead to localized supply issues. He stated, “This would prevent a patchwork of state-by-state policies while ensuring consumers have access to the fuels they depend on every day.”
Conversely, other industry groups, including the American Fuel and Petrochemical Manufacturers (AFPM), are opposed to the EPA’s decision. AFPM has raised concerns regarding potential increases in gasoline prices and the risk of supply disruptions resulting from rapid implementation. Geoff Moody, AFPM’s Senior Vice President, urged affected governors to advocate for more time to prepare for these changes, stating the importance of understanding the impact on consumers.
Renewable Fuel Standard (RFS) Considerations
Several organizations, including API and agricultural associations, have addressed the EPA on the Renewable Fuel Standard (RFS), advocating for more robust future renewable fuel volumes. They believe that consistent targets will promote investment and stability in the renewable fuels sector. In their correspondence, they highlighted the importance of releasing multi-year standards, which can provide clarity and predictability for renewable fuel producers and obligated parties alike.
The RFS program, established in 2005 and expanded in 2007, mandates increasing quantities of biofuels to be blended into the transportation fuel supply, with past targets reaching 36 billion gallons by 2022. The EPA is tasked with setting quotas for various renewable fuels moving forward, considering many factors such as costs and energy security.
Conclusion
As the April 2025 implementation date approaches, the EPA’s approval of year-round E15 sales signifies a pivotal move for the Midwest’s fuel landscape. While supporters herald the benefits for consumer access and market stability, detractors caution against insufficient preparation and possible negative impacts on fuel prices. With ongoing discussions in Congress regarding nationwide E15 sales, the energy landscape continues to evolve amid competing interests.
