Indiana Corn Growers Association opposes SB 303

Under SB 303, passed by the Indiana Senate and House, fuel retailers would be required to display an additional state-required warning label on pumps that dispense E15, which is a fuel blend of 15 percent ethanol with 85 percent gasoline.

Specifically, the Indiana label would have to be posted “next to the fuel grade selection button, as a part of or in addition to the label required to be affixed to the dispenser in effect on Jan. 1, 2022, this printed statement in 14 point, black, Helvetica Bold font: “Attention: E15. Check owner’s manual for compatibility and warranty requirements.” or a similar statement approved by the U.S. Environmental Protection Agency.”

A special Indiana E15 label is unnecessary because existing federal consumer notice labels are already in use.

Since June 2011, U.S. Environmental Protection Agency (EPA) has had in place an E15 fuel pump labeling requirement, warning consumers against using E15 in vehicles older than model year 2001, motorcycles, watercraft, and gasoline-powered equipment such as lawnmowers and chainsaws. EPA is currently in a rulemaking process, initiated after the Indiana General Assembly session commenced, to update its Federal E15 label to reflect the national fleet’s greater compatibility with E15, since it is approved for use in most vehicles manufactured after 2001. SB303 unnecessarily requires an additional Indiana-only E15 label on the gasoline dispenser.

After the year-round expansion of E15 use in 2019, retailers offer E15 at 2,341 stations in 30 states, as of January 2021. More than 200 fuel terminals now offer E15, a large expansion from the five terminals offering E15 in 2017, increasing availability of this fuel lower in carbon and exhaust emissions and lower in cost. E15 use expansion is good for farmers and good for consumers.

Indiana ethanol producers and fuel retailers believe that the creation of a special Indiana E15 label that must be displayed along with the federal E15 label will deter the use of E15 fuels and thus decrease demand, which would adversely impact corn farmers.

ICGA testified against the bill before the House Committee on Environmental Affairs, noting that we would be glad to work with the bill’s author on changes to the bill. The House passed the bill with the restrictive label requirement. At the time of this printing, the bill is sitting in Gov. Eric Holcomb’s queue of passed bills awaiting signature.

ICGA remains opposed to the provisions of SB 303, which will require a special Indiana E15 label, as it is both unnecessary and could cause harm to ethanol sales and corn demand.