Wallaces Farmer

“Unnecessary and ridiculous” E15 ethanol restrictions begin June 1, unless President Trump acts soon.

Rod Swoboda

May 8, 2018

5 Min Read
RALLYING FOR E15: Fuel retailers from across the U.S. join corn growers in asking President Trump to allow for increased ethanol blends.

On May 7, fuel retailers offering the E15 ethanol blend in 11 states sent a letter to President Donald Trump asking him to immediately instruct the Environmental Protection Agency (EPA) to follow through on his pledge to allow year-round sales of E15 before summer restrictions begin June 1. This letter and several other letters from farm and renewable fuel organizations across the U.S. were sent to Trump ahead of a planned Tuesday White House meeting regarding biofuels issues. 

The summertime E15 restrictions, which Trump has called “unnecessary and ridiculous,” restrict retailers to offering E15 to only flex-fuel vehicles during the summer fuel season that ends September 15. Without action by the president, retailers fear “another summer of lost opportunity.” 

“It is imperative that you direct the EPA to immediately begin the rule-making process necessary to turn your pledge into reality. Without regulatory relief, on June 1 we will see our E15 sales plummet and consumers forced to pay more for fuel than they should,” the retailers said in the letter. 

Ending the arbitrary E15 ban would be justified

Recognizing the slow nature of EPA rulemaking, the retailers added: “We further implore you to direct the EPA to use its enforcement discretion to allow summertime E15 sales if the E15 restrictions are not formally removed by June 1. The purpose of the Clean Air Act is to reduce emissions. E15 reduces emissions. Nothing could be more justified than ending the arbitrary summertime E15 ban.”

The retailers also emphasized the millions of dollars their companies have invested in infrastructure to blend biofuels and obtain RINs (Renewable Identification Numbers). RIN prices have gone down by two-thirds this year and the fuel retailers attribute this to “questionable and secretive” EPA small refinery exemptions to the Renewable Fuel Standard (RFS). 

“These actions by the EPA have undercut the return on our investments,” the retailers wrote. “Being allowed to sell E15 year-round would help take some of the economic pain out of the unexpected collapse of RIN values.” To view their complete letter sent to Trump, click here.

Growth Energy also calls on Trump for relief

E15 retailers from across the country who belong to Growth Energy are also urging Trump to ensure that EPA follows through on his commitment to allow fuel containing 15% ethanol to be sold year-round.

“This common-sense change will allow us the opportunity to consistently offer a less expensive, higher performing fuel to our consumers at stations across America,” the companies stated in their letter to the president.

Today, there are 1,374 retail locations in 29 states selling E15 usually 3 to 10 cents below the price of regular gasoline. The vast majority of these locations are selling E15 along with E85 at blender pumps and making both available at nearly every dispensing location. Growth Energy works hand-in-hand with Prime the Pump, a nonprofit organization dedicated to helping build the infrastructure and distribution of higher biofuel blends, to give more and more Americans the choice of E15 at the pump. 

Outdated E15 regulation hurts consumers

Growth Energy CEO Emily Skor says the outdated regulation not only hurts consumers by removing a cleaner, more cost-efficient fuel option during the summer driving season but also harms businesses.

“President Trump is a businessman, and he understands this regulation is bad for business and bad for rural America,” says Skor. “Because retailers can’t offer E15 to consumers during the summer driving months, they must go through the costly and unnecessary hassle of relabeling every single E15 dispenser twice a year – costing roughly $1.5 million. This confuses consumers and makes marketing a legally approved fuel more difficult than it should be.” 

The retailers sending the letter from Growth Energy also urged the president to avoid implementing a cap on the price of RINS under the RFS and asked him to curtail the rapid expansion of so-called small refinery “hardship” waivers.

NCGA asks for increased ethanol blends

Also on Monday May 7, the National Corn Growers Association asked President Trump to follow through on the necessary steps to implement year-round sales of higher ethanol blends, such as E15. 

“Year-round sale of higher ethanol blends, like E15, would replace outdated policy and provide benefits not only for farmers but also for consumers and the environment,” says NCGA president Kevin Skunes. “Corn farmers have made huge strides in increasing productivity but, at the same time are facing a fifth consecutive year of declining corn crop receipts. A firm commitment to the RFS would help provide the stability farmers need during difficult times.”

NCGA was joined by the American Farm Bureau Federation, National Farmers Union, American Soybean Association and National Association of Wheat Growers in a letter to Trump thanking him for his recent comments in support of higher blends and urging that he begin the necessary regulatory fixes to move forward with implementation. Click here to read NCGA’s letter to President Trump.

Ads in newspapers condemn Pruitt’s waivers

An open letter from biofuel plant operators in 18 states was published via full page ads in the Wall Street Journal, the New York Times, and the New York Post (c/o Growth Energy). It urges the president to “unleash rural growth by cutting the red tape” on E15 and condemns EPA administrator Scott Pruitt’s waivers for “destroying demand for biofuels and crops during the worst farm crisis since the 1980s.”

Finally, the state-based representatives of America’s corn growers issued their own letter to USDA Secretary Perdue, asking him “to continue to advocate for real solutions, such as RVP parity for higher ethanol blends, and to continue to highlight the demand destruction caused by EPA’s refinery exemptions for the RFS.”

About the Author(s)

Rod Swoboda

Rod Swoboda is a former editor of Wallaces Farmer and is now retired.

Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like