US Greenlights Expansion of E15 Gasoline Sales Across Midwest from 2025

On Thursday, the U.S. government announced its approval of a request made by Midwestern governors to expand sales of gasoline containing higher blends of ethanol in their respective states, commencing in 2025.

Currently, the sale of E15 gasoline, which contains 15% ethanol, is restricted during summer months due to environmental concerns related to smog. However, the biofuel industry has been advocating for year-round sales of E15 for years. Despite this, the approved start date of 2025 falls short of expectations, being one year later than initially proposed.

In 2022, governors from Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin jointly requested year-round E15 sales, citing potential benefits such as reduced pump prices through increased fuel volumes.

However, concerns have been raised by some oil refiners who argue that permitting E15 sales in select states rather than nationwide could lead to localized fuel price spikes and supply challenges.

The decision to delay the implementation until 2025 allows the Biden administration to defer any potential repercussions, including price spikes, until after the November 2024 U.S. presidential election. Notably, two battleground states in the upcoming election, Wisconsin and Minnesota, are among those affected by the decision.

Given that inflation and economic factors are significant vulnerabilities for President Biden’s re-election campaign, this delay could be seen as a strategic move.

The Environmental Protection Agency had forwarded a final rule on the proposal to the White House in December, setting an effective date of April 28, 2024. However, the newly approved timeline shifts the effective date to April 28, 2025.

“By extending the implementation date, this final action reduces the risk of gasoline supply issues this summer and the price impacts that could have come with 2024 implementation,” an EPA official said on Thursday.

The EPA did not comment on whether it would issue a temporary waiver enabling E15 sales this summer.

“We cannot speculate about the 2024 summer driving season. We will continue to monitor the situation, consult closely with the Department of Energy, and be prepared to act should conditions warrant,” the agency said.

Following the announcement, the Renewable Fuels Association, representing biofuels interests, urged the administration to intervene to guarantee consumer access to E15 this summer. Expressing disappointment over the delayed start date of 2025 for the new rule, the association emphasized the importance of immediate action to ensure the availability of E15.

In contrast, the American Petroleum Institute, representing the oil industry, voiced support for a legislative remedy that would enable year-round sales of E15 nationwide. This stance underscores the industry’s preference for a comprehensive solution to the issue.