The American Petroleum Institute (API) has called for a national policy on higher-ethanol gasoline blends after the U.S. Environmental Protection Agency (EPA) announced plans to expand sales of E15 fuel in several Midwestern states.
Key Highlights:
EPA’s Decision:
On February 21, the EPA confirmed an implementation date of April 28 for year-round sales of gasoline containing 15% ethanol, known as E15.
This decision responds to a request from eight Midwestern governors and allows both E15 and the more common E10 blends to be sold during the summer months, overcoming previous restrictions.
Industry Reactions:
While biofuel producers support the expansion of E15, they advocate for a nationwide solution to avoid a fragmented market that could lead to supply disruptions.
API’s vice president of downstream policy, Will Hupman, emphasized the need for Congressional action to create a cohesive national policy, stating it would “prevent a patchwork of state-by-state policies.”
Bipartisan Legislative Efforts:
A bipartisan group of U.S. senators has reintroduced legislation aimed at permitting nationwide sales of E15, indicating growing support for a unified approach.
Opposition from Other Oil Groups:
Other industry groups, including the American Fuel and Petrochemical Manufacturers (AFPM), have criticized the EPA’s decision. AFPM’s senior vice president, Geoff Moody, urged governors to protect consumers from potential increases in gasoline costs and supply disruptions by allowing more time for market adjustments.
States Affected:
The EPA’s decision will impact Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin. The agency has indicated it may grant one-year delays for states requesting additional compliance time, as Ohio has already sought.
Context of the Decision:
This move signals the Trump administration’s evolving stance on biofuel policy, following contentious debates in the previous term regarding the balance between oil refiners and biofuel producers.