As part of President Biden's commitment to providing Americans relief from market supply issues created by Putin's unprovoked war in Ukraine, Friday the U.S. Environmental Protection Agency (EPA) is issuing an emergency fuel waiver to allow E15 gasoline--gasoline that uses a 15 percent ethanol blend--to be sold during the summer driving season. This action will increase fuel supply and provide consumers more choices at the pump. The waiver is a critical step to implement President Biden's announcement that he is taking action to protect Americans from supply crises by reducing our reliance on fossil fuels, building real U.S. energy independence, supporting American agriculture and manufacturing, and accelerating the transition to clean energy.
"President Biden and this Administration are committed to protecting American consumers from the impacts of Russia's unprovoked attack against Ukraine," said EPA Administrator Michael S. Regan. "Putin's war has had a profound impact on global and domestic energy markets. In consultation with Secretary Granholm, I have concluded that it is necessary to take action to allow E15 sales during the summer driving season in order to minimize and prevent disruption of summertime fuel supply to consumers."
This action is being taken to counteract Russia's unjustified, unprovoked, and unconscionable war against Ukraine and the profound impact on global and domestic energy markets. EPA and the U.S. Department of Energy (DOE) have been actively monitoring market supply disruptions caused by Russia's war in Ukraine.
The Clean Air Act allows the EPA Administrator, in consultation with DOE, to temporarily waive certain fuel requirements to address shortages. As a result of the war in Ukraine, Administrator Regan determined that extreme and unusual fuel supply circumstances exist and has granted a temporary waiver to help ensure that an adequate supply of gasoline is available. As required by law, EPA and DOE evaluated the situation and determined that granting the waiver was in the public interest.
Currently, in roughly two-thirds of the country, E15 cannot be sold from terminals starting on May 1 and at retail stations starting on June 1. EPA is providing relief by extending the 1-psi Reid Vapor Pressure (RVP) waiver that currently applies to E10 gasoline to E15, which will enable E15 sales throughout the summer driving season in these areas, if necessary. This action only extends the 1-psi waiver to E15 in parts of the country where it already exists for E10. E15 can already be sold year-round in parts of the country that have a Reformulated Gasoline (RFG) program.
Because the RVP of E10 and E15 gasoline used by consumers will be the same (both will be 1 psi higher than otherwise required by EPA or state regulations) EPA does not expect any impact on air quality from this limited action. EPA's research has shown no significant impact on evaporative emissions when the 1-psi waiver is extended to E15. With no significant impacts on emissions from cars and trucks, we expect consumers can continue to use E15 without concern that its use in the summer will impact air quality.
EPA's emergency fuel waiver will go into effect on May 1 when terminal operators would otherwise no longer be able to sell E15 in the effected regions of the country and will last for the statutory maximum of 20 days. EPA will continue to monitor the supply with industry and federal partners, and the Agency expects to issue new waivers effectively extending the emergency fuel waiver until such time as the extreme and unusual fuel supply circumstances due to the war in Ukraine are no longer present.
Emily Skor, CEO of Growth Energy, said, "We're grateful to EPA Administrator Michael Regan for working quickly to fulfill President Biden's commitment to deliver relief at the pump by ensuring unrestricted access to lower cost E15 this summer. Not only has E15 been saving drivers as much as 60 cents per gallon, it reduces greenhouse gas emissions and has lower fuel volatility and smog-forming potential, and supports economic growth across rural America. America is the world's largest producer of biofuels, and we should be making use of our full capacity in the push for greater energy security and a healthy climate. Unfortunately, outdated restrictions that are unsupported by science and drafted before E15 was available stand in the way of allowing consumers to enjoy a cleaner, more affordable choice at the pump."
Geoff Cooper, president and CEO of the Renewable Fuels Association, said, "We commend Administrator Regan and his team at EPA for acting quickly and decisively to implement the emergency fuel waiver announced recently by President Biden. As U.S. and global gasoline stocks continue to shrink as a result of Putin's war on Ukraine, EPA's action will help prevent summertime fuel shortages while also protecting air quality and reducing greenhouse gas emissions. Extending the fuel supply with larger volumes of lower-cost, lower-carbon ethanol makes perfect sense, and we thank the Biden administration for turning to America's farm fields for help instead of Saudi Arabia's oil fields. Today's emergency waiver will ensure cost-conscious drivers across the country will continue to have access to more affordable E15 all summer long. The E15 blend has typically been priced 20-30 cents per gallon below regular gasoline in recent months, offering an important measure of relief to consumers during this time of surging inflation."
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