RFA Urges EPA Action To Expand E15 Use and Reduce Gasoline Prices
The Renewable Fuels Association (RFA) is urging federal regulators to take immediate steps that would allow greater use of ethanol in the U.S. fuel supply. The organization believes expanding ethanol blends could help reduce gasoline prices and protect the country from global energy supply disruptions.
"Adding larger volumes of low-cost ethanol to gasoline is a proven solution for reducing fuel prices and helping to insulate the U.S. market from global supply shocks," wrote RFA President and CEO Geoff Cooper in a letter to Interior Sec. Doug Burgum. "A series of simple deregulatory actions could rapidly unleash billions of gallons of additional fuel volume, providing relief at the pump for hardworking American families."
According to the RFA, ethanol is currently significantly cheaper than gasoline. On March 6, ethanol was selling at a wholesale price that was about $0.84 per gallon lower than gasoline, representing a 31% discount. E15 gasoline, which contains 15% ethanol, has also recently sold for about $0.27 per gallon less than the standard E10 gasoline blend.
Cooper explained that increasing ethanol use is a practical way to lower fuel costs for consumers while strengthening the domestic energy supply. He noted that ethanol produced from American farm crops already plays an important role in the nation’s fuel system.
To help expand the use of ethanol, the RFA asked the Environmental Protection Agency (EPA) to take several actions. One major request is for the EPA to issue emergency summertime waivers allowing E15 fuel to be sold nationwide. These waivers would allow a 1-psi Reid vapor pressure volatility tolerance for E15 and for E10 in some areas that previously opted out of the waiver program.
The association also recommended removing current E15 Misfuelling Mitigation Plan requirements. Instead, retailers offering E15 would simply need to keep E0 or E10 available at one clearly marked fuel pump.
Another recommendation is to recognize that most fuel equipment installed after 2005 is compatible with E15. This includes fuel dispensers, underground storage tanks, pipes, hoses, and nozzles.
"The most effective way to prevent additional increases in gas prices across the U.S. is by expanding and diversifying the domestic fuel supply, including ethanol made from our nation's farm fields," said Cooper.
"Knocking down regulatory barriers and allowing E15 to be stored and distributed in existing infrastructure throughout the summer will lower fuel costs for Americans and strengthen the market's resilience against global supply disruptions," said Cooper.
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