When the U.S. EPA issued final rules recently allowing E15 to be sold at retail outlets year-round, the action drew praise from government leaders, farmers, commodity groups and equipment manufacturers. However, it doesn’t guarantee a quick bump in ethanol usage.

U.S. Secretary of Agriculture Sonny Perdue issued this statement: “I appreciate President Trump’s steadfast support for our patriotic farmers, and for his commitment to expand the sale of E15 and unleash the full potential of American innovation and ingenuity as we continue to demonstrate our rightful place as the world’s leader in agricultural and energy production.”

He said approval for year-round use of E15 gives consumers more choices at the pump, boosts demand for corn and will contribute to cleaner air.

More praise

The Indiana Corn Growers Association also praised EPA’s decision to allow E15 ethanol blends to be sold during summer months. Until the recent approval, EPA required retailers in many parts of the country to stop selling E15 during summer. Now, EPA allows the same volatility adjustments for summer for E15 as for E10.

“We appreciate the work that went into following through on this promise,” said Sarah Delbecq, ICGA president and a farmer from Auburn. “Ethanol is a vital consumer of Indiana corn, and any expanded use of ethanol financially helps Hoosier farmers. This rule, which supports ethanol use and promotes corn demand, has certainly been a long time coming, and Indiana growers definitely welcome this announcement.”

Dennis Slater, president of the Association of Equipment Manufacturers, also praised EPA’s move immediately. “This morning’s correction to the Clean Air Act provides a significant boost to America’s ethanol and corn industries,” he said.

AEM released figures noting that the fix allowing E15 to be sold in the summer could result in an additional 1.3 billion gallons of demand within five years. That would translate into more than 464 million bushels of corn demand.

More work needed

Despite the boost to ethanol thanks to EPA’s rule change, some note increasing acceptance and demand for ethanol across the country is still a work in progress. Delbecq says another issue needs to be addressed by EPA. That relates to EPA granting waivers to small refineries that choose not to blend ethanol in accordance with the Renewable Fuel Standard.

She contends that these waivers continue to negatively impact Indiana farmers because without the waivers, more ethanol would be required and there would be even more demand for corn.

That’s not the only issue holding back even bigger increases in ethanol usage. According to various retailers, many consumers don’t understand that ethanol can be blended into gasoline for most cars produced in this century without any harmful effects. Some consumers prefer to listen to their car’s mechanic, and some mechanics aren’t convinced ethanol is safe for engines either.

Other obstacles include making ethanol blends available at more locations. What a store decides to put in its tanks and sell to consumers through its pumps must be profitable for the store, retailers say. Most chains find they can only offer so many products at their pumps. Most fuel retailers agree consumer education is crucial going forward.

Still, for those chains already offering E15 blends or that want to offer it, EPA’s decision is a step in the right direction.   

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