EPA recently announced it will allow Midwest states to request year-round availability of E15 fuel starting in 2025. This decision comes as EPA plans to remove the 1-pound per square inch (psi) Reid Vapor Pressure (RVP) waiver for summer gasoline-ethanol blended fuels containing 10% ethanol. Effective April 28, 2025, the waiver will be removed in Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin. Additionally, EPA will finalize regulatory amendments to remove the 1-psi waiver for E10 in these states and establish a process for requesting reinstatement of the waiver. EPA also intends to eliminate regulations that extended the 1-psi RVP waiver to fuel blends between 10% and 15% ethanol. This decision follows input from public meetings and a comment period, with EPA citing concerns over insufficient fuel supply as a reason for delaying the effective date.
The final rule was sent to the Office of Management and Budget (OMB) for review on December 18, 2023 with five meetings held at the agency on the topic. While OMB still showed the final rule as pending review as of February 22, 2024, expectations are that will change to being completed as EPA Administrator Michael Regan signed the final rule on that date and it will be published at some point in the future in the Federal Register.
Of note: Prior to EPA’s announcement, USDA Secretary Tom Vilsack said until year-round sales of E15 are cleared next year, the administration would likely issue temporary waivers this summer to enable such sales as needed — as it did in 2022 and 2023. The American Coalition for Ethanol (ACE) said, “The administration rightfully exercised its authority to grant emergency waivers in 2022 and 2023, and we will be pushing for a solution covering the summer of 2024 as well.”
EDITOR’S TAKE:
Very good news for both consumers and corn producers! This ruling will substantially increase the demand for ethanol and, hence, corn – the primary feedstock for ethanol production. Such an increase will help relieve some of the current market pressure for corn prices and boost them accordingly. This decision and action have been several years in the making, but is welcomed and lauded by the National Corn Growers Association and other agricultural groups. Please make sure you continue to target farmers/ranchers as prime customer prospects.
