WASHINGTON, D.C. – Fuel stations throughout the country will be able to sell gasoline blended with 15% ethanol during the summer under an emergency waiver issued Friday by the Environmental Protection Agency in a move that could reduce prices at the pump and boost demand for the Midwest-based ethanol industry.
The EPA framed its decision as a way to reduce gasoline prices at a time of market supply uncertainty because of Russia’s invasion of Ukraine. The agency said its action also encourages U.S. energy independence and supports American agriculture and manufacturing.
Current estimates indicate that on average, E15 is about 25 cents a gallon cheaper than E10.
Most gasoline sold in the U.S. is blended with 10% ethanol and the higher 15% blend hasn’t been allowed in the summer because of concerns it could worsen smog during hot weather.
The EPA said its analysis shows allowing sales of the higher blend shouldn’t have a significant impact on air quality.
EPA Administrator Michael S. Regan said, “Allowing E15 sales during the summer driving season will not only help increase fuel supply, but support American farmers, strengthen U.S. energy security, and provide relief to drivers across the country.”
Ethanol policy is especially important in the Midwest, where most of the roughly 200 renewable fuel plants are located. In 2022, those refineries produced over 15.4 billion gallons of ethanol, and the industry used about 45% of the nation’s corn crop, roughly one-third of which was grown in Iowa and Illinois.
The industry has pushed for years to allow year-round sales of E15. In March, the EPA proposed to permanently allow the higher blends in eight Midwestern states beginning in 2024.
“Homegrown, renewable biofuels, which bolster American agriculture keeps our supply chains running, “said U.S. Secretary of Agriculture Tom Vilsack. At the same time, thanks to President Biden’s Inflation Reduction Act, USDA is continuing to make critical investments in infrastructure to expand biofuels’ availability for drivers at thousands more retailers through competitive grants we expect to announce soon.”
