Insight Focus
There has long been fragmentation over the use of E15 in gasoline blends. However, a new piece of legislation could simplify that by standardising the rules across the US. But despite support from some camps, oil blenders argue that the move will have a negative impact on consumers.
Oil Industry Critical of New Ethanol Mandate
Proposed legislation in the US Congress that would mandate the nationwide use of E15 gasoline blends has the oil and gas industry wringing its hands and criticizing President Donald Trump’s biofuel policies.
In a July 25 letter to top Republican lawmakers seen by Reuters, the American Fuel and Petrochemical Manufacturers (AFPM) said it opposes efforts in the Congress to raise the standard for the percentage of corn-based ethanol in gasoline to 15% from 10%.
The trade group also expressed opposition to the Environmental Protection Agency’s (EPA) recent proposal to hike the overall volumes of biofuels that refiners must blend into US fuel each year.
Source: EPA
AFPM’s President and CEO Chet Thompson said in the letter that the current track of national fuels policies will “negatively impact consumers, our members and the president’s energy dominance agenda.”
Thompson said that the latest Renewable Fuel Standard proposal from the Trump administration is “bad” for consumers and the refining industry. Thompson also calls out the EPA proposal to limit renewable identification numbers generation on renewable fuels produced in the US using imported feedstocks.
E15 Made Permanent
The Renewable Fuels Association (RFA) recently applauded members of the Senate and US House for introducing the Nationwide Consumer and Fuel Retailer Choice Act to make the year-round availability of lower-cost, lower-carbon E15 fuel nationwide permanent.
“This bipartisan legislation would finally bring nationwide consistency and stability to the marketplace and eliminate the need for last-minute emergency waivers,” said RFA President and CEO Geoff Cooper. “We urge lawmakers to swiftly adopt this bill and deliver a win for American families seeking cleaner, lower-cost fuel options. Time is of the essence.” He added that ethanol producers, oil refiners, fuel retailers, equipment manufacturers, farmers and consumers have all rallied behind this “commonsense” approach.
The Nationwide Consumer and Fuel Retailer Choice Act would harmonize fuel volatility regulations for ethanol-blended fuels across the country, allowing for the year-round sale of E15 in conventional gasoline markets. It also would supersede a regulation allowing eight Midwest states to offer year-round E15 starting in 2025, as that regional approach would no longer be necessary with a federal fix in place.
Ethanol Inconsistency Targeted
Since 2023, RFA and the American Petroleum Institute have been working with a broad coalition of energy and agriculture organizations to encourage Congress to quickly adopt legislation to permanently resolve inconsistent fuel volatility regulations, and legislation was filed in both houses in the last Congress by a large, bipartisan number of cosponsors.
RFA estimates that nearly 97% of registered vehicles on the road today are legally approved by the EPA to use E15, and the vast majority also carry the manufacturer’s endorsement to use E15. Over 3,700 fuel stations currently carry the blend.
The bill amends the Clean Air Act to address the limitations on Reid Vapor Pressure (a measure of gasoline’s volatility) that are placed on gasoline during the summer ozone season. Specifically, the bill applies the waiver for Reid Vapor Pressure requirements that is applicable to gasoline blended with E10 to gasoline blended with up to 15% ethanol (E15). This change allows gasoline that is blended with 10% to 15% ethanol to be sold year-round.
The bill also modifies the Renewable Fuel Standard Program, which requires transportation fuel sold or introduced into commerce in the US to contain minimum volumes of renewable fuel. Under the existing program, obligated parties, such as small refineries, must satisfy the volume obligations by either blending renewable fuels into their gasoline or diesel fuel products or by acquiring credits that represent the required renewable fuel volume. The bill directs the EPA to return compliance credits to small refineries under certain circumstances.
