In July 2021, the D.C. Circuit Court of Appeals invalidated the Environmental Protection Agency’s actions during the Trump administration which allowed for year-round E15 use. Now, farmers are starting to see the stark realities as they hear how retailers, including Cenex, are unable to offer E15 starting June 1.

During an issue update with National Corn Growers Association members at Commodity Classic, a farmer shared that farmer-owned CHS sent communication to Cenex retailers stating that they would not be able to sell E15 from June 1, 2022 to Sept. 15, 2022 at the retail level. CHS cannot offer E15 at the terminal/wholesale level starting May 1.

The news brought about a rallying cry from corn producers to call their local CHS facilities and visit the Cenex booth on the Commodity Classic show floor. “We own CHS. We have to stand up and say, 'You need to support us. We are your owners and customers,’” one farmer says.

And the Cenex booth did receive plenty of corn farmers visiting with them about the news of ending sales of E15. But those conversations quickly turned to a more understanding tone when realizing the court ruling would put any retailer who offers E15 in the summer out of compliance of federal regulations.

As a farmer-owned cooperative and the nation’s leading agribusiness cooperative, CHS says it has worked diligently to make ethanol-blended fuels, including E15, widely accessible to consumers. Cenex retailers must offer two grades of gasoline and, when permitted by law, E15 can be one of those grades of gasoline. Of the nearly 1,400 Cenex retail stations, over 50 of them predominantly in Minnesota and Iowa offer E15, says Erin Wroge, senior product manager of CHS Refined Fuels.

“We’ve had a lot growers come into our booth. And we’ve had very open conversations with them and we’re looking to have more. When we’ve had a chance to speak to growers, they’ve been very understanding of the reason why we can’t sell in the summer is due to law,” says Will Stafford, CHS Washington representative.

Wroge says nearly 80% of farmers who have visited the booth have left with a more accurate understanding of the situation that limits retailers from selling E15.

“We understand they’re frustrated. Because CHS is a supporter of ethanol and a supporter of E15, we don’t want to take these steps backward either. We don’t want our retailers to have to take these steps. But we have to do business in accordance with federal regulations,” Wroge says.

Legislative fix needed

Stafford says CHS is extremely supportive of all legislation that aims to make E15 year-round, including the Next Generation Fuels Act introduced by Rep. Cheri Bustos, D-Ill.

Earlier this week Iowa Congressional members at the federal level introduced a more encompassing piece of legislation - Home Front Energy Independence Bill - which would provide biofuel tax incentives for retailers and blenders to lower prices for consumers, authorize cost-share funding to expand biofuel retail infrastructure across the nation, as well as remove barriers to allow greater access for blends such as E15/Unleaded 88.

Iowa is considering state legislation that would mandate E15 sales, and actually force retailers to be out of compliance with federal laws. Wroge says, “CHS’s position is to support laws in accordance with federal regulations.”

“We don’t want to put our retailers in a position under a mandate where then they’re breaking the law,” Wroge says.

She says CHS is advocating for a fix at the national level. “Finding a solution to the RVP waiver situation at a national level will allow us networkwide year-round sales of E15," Wroge says.

Ethanol solution to higher gas prices

A group of senators led by Sens. John Thune, R-S.D., and Dick Durbin, D-Ill., sent a letter which urged President Joe Biden to quickly authorize year-round use of E15 to bolster the nation’s liquid fuel supply and keep prices lower at the pump.

The letter requested the president utilize any administrative authority to permit the sale of E15 fuel over the 2022 summer driving season, extending the Reid vapor pressure waiver from June 1 through September 15.

In a letter sent to the White House last week, the Renewable Fuels Association and other farm and biofuel organizations likewise urged the administration to use existing authority to allow for the year-round sale of E15 fuel, explaining that an immediate move to restore year-round sales of E15 can ease the impact of oil market disruptions and surging gas prices caused by Russia’s invasion of Ukraine.

RFA President and CEO Geoff Cooper says, “Ethanol is $1 per gallon cheaper than gasoline today, meaning higher blends like E15 can immediately help put a lid on surging gas prices and deliver immediate economic relief to households across the country. The emergency action recommended by these senators would remove a key roadblock that restricts consumer access to lower-priced E15, and we encourage EPA to immediately act upon this request.”

Jim Bauman, vice president market development of the National Corn Growers Association, shares if one-third of the current E10 use transitioned to E15 use, it would fully replace the amount of oil imported from Russia. RFA has also shared that there is enough excess ethanol capacity today to eliminate the need for any Russia imports.