EPA Says it Will Issue Emergency E15 Waiver for a Fifth-Straight Summer
EPA will issue an emergency waiver on volatility limits for E15 during the summer driving season starting May 1, according to a filing on the agency’s website.
The announcement marks the fifth summer in a row the agency has used its emergency authority under the Clean Air Act to waive RVP limits on the higher blend of ethanol. The waivers are issued in 20-day increments and will likely be extended throughout the summer.
EPA said the relief will “work to prevent disruption in America’s fuel supply by keeping E15 on the market and giving Americans more fuel options.” The agency added that it consulted with the Department of Energy and determined that granting the waivers would be in the public’s interest, but didn’t directly attribute the decision to fuel concerns stemming from the U.S.-Israeli war against Iran.
EPA Administrator Lee Zeldin, however, said in a closed-door press briefing Wednesday that the agency has been “closely monitoring fuel markets for potential supply disruptions that could create extreme and unusual conditions.”
He added that “based on the information we possess, we foresee potential for a disruption to the American fuel supply,” Zeldin said.
EPA also said it would waive the “boutique” fuel requirements for gasoline over that same period, allowing for the production and distribution of blends between 9 to 15 percent ethanol content at a nationwide RVP of 10 psi.
Under the CAA, E15 isn’t eligible for the 1-lb. Reid Vapor Pressure waiver provided to E10 during the summer ozone season and cannot be sold in parts of the country from June 1 through Sept. 15 because of air quality concerns.
The EPA can choose to waive that provision if it is in the public’s interest to do so, or if it finds that “extreme and unusual” factors are weighing on the nation’s fuel supply. The agency under President Joe Biden chose to provide the waiver over three straight summers due to the conflicts in Ukraine and the Middle East.
And while the Trump administration offered the waiver last year for similar reasons, sources said this year’s round of relief is largely being driven by oil supply concerns arising from the continuing conflict in the Middle East.
News of the relief will likely ease refiner concerns that agency might not offer relief this summer, which could have encouraged a group of Midwest governors to move forward with a 2022 request to be allowed to opt-out of the RVP limits entirely.
Before Wednesday’s waiver, RVP specifications for summer gasoline varied in the Midwest as operators prepared for the potential opt-out by Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota, and Wisconsin.
In addition to the typical 8.5-lb. RVP and 9.0-lb. RVPs for sub-octane and CBOB blendstock, there were also 7.3-lb. and 7.8-lb. RVP specifications to serve the states affected by the opt-out.
Kansas Gov. Laura Kelly last month said she would submit an opt-out request in April if Congress failed to reach a deal on nationwide, year-round E15 access, something that appears unlikely.
News of the relief was welcomes ethanol industry officials. Geoff Cooper, president and chief executive of the Renewable Fuels Association thanked the administration for “acting quickly and decisively to combat potential fuel shortages and help keep a lid on gas prices this summer.”
“Today’s action will allow maximum flexibility and fuel fungibility in the marketplace, which is exactly what the supply chain needs right now,” Cooper said.
And Emily Skor, chief executive of Growth Energy, said, “with conflict in the Middle East and its impact on the global oil marketplace, it’s more important than ever to shield U.S. consumers from volatility with lower-cost, American-made fuel.”
Brian Jennings, chief executive of the American Coalition for Ethanol, said “if ever there were justifiable conditions to merit an emergency waiver for E15, it would be now as fuel prices have skyrocketed from war with Iran and a historical oil market disruption in the Strait of Hormuz.”
Monte Shaw, executive director of the Iowa Renewable Fuels Association (IRFA), also thanked the president, while noting that “…the emergency waiver is a temporary solution.”
“Only Congress can provide a permanent E15 fix and it’s beyond time for them to act,” Shaw said.
The decision was also applauded by refining industry group. Chet Thompson President and Chief Executive of the American Fuel & Petrochemical Manufacturers said his organization appreciates “EPA making this decision now, ahead of the summer driving season, to ensure companies can adequately plan and minimize disruptions.”
“We are confident in the ability of the U.S. refining industry to continue providing the fuels consumers need and expect,” Thompson added.
Reporting by Patrick Newkumet, pnewkumet@opisnet.com; Editing by Jordan Godwin, jgodwin@opisnet.com