By Cassie Mullen, Director of Market Development
Renewable Fuels Association
The U.S. ethanol industry is at a pivotal point as we look forward to the next year, in two ways.
First, it’s long past time to protect the year-round sale of E15 so American drivers have a lower-cost, lower-carbon fuel option all the time, and especially during the summer travel season. Right now, the U.S. Environmental Protection Agency has delayed a petition from eight Midwest governors to allow year-round E15 it in their states, while in Congress legislation that would codify year-round E15 has seen its support grow.
The Nationwide Consumer and Fuel Retailer Choice Act would harmonize fuel volatility regulations for ethanol-blended fuels across the country, allowing for the year-round sale of E15 in conventional gasoline markets. RFA and the American Petroleum Institute have led a broad coalition of energy and agriculture organizations that has called on Congress to quickly adopt this important legislation.
RFA estimates that nearly 97 percent of registered vehicles on the road today are legally approved by the EPA to use E15, and the vast majority also carry the manufacturer’s endorsement to use E15. Analyses by RFA and the U.S. Energy Information Administration confirmed that expanded use of E15 provided meaningful consumer savings at the pump in summer 2022, as war in Ukraine pushed crude oil and gasoline prices to historic highs.
A recent CSP survey found that one out of every five fuel retailers plan to add the E15 blend at their locations in the coming year; more than 3,100 fuel stations currently carry the blend.
This brings us to the second E15 opportunity before us. The federal government’s ongoing Higher Blends Infrastructure Incentive Program, or HBIIP, has made hundreds of millions of dollars available to help retailers offer E15 and E85.
USDA is currently accepting applications for $450 million in matching grants via the ongoing program, and RFA is ready and willing to assist retailers with their applications. Since 2020, via HBIIP and state programs, RFA has helped more than 85 companies secure grants in 21 states for almost $68 million in funding, matched by over $217 million in retailer funding for almost $285 million towards higher blends infrastructure.
Much of our work in this area is done with the strong support of corn grower associations like Indiana Corn, who see the continued value of growing the ethanol market to support their members and their farms, as well as to provide everyone with American-made fuel than can drive us into a low-carbon future with more energy security and cost savings for families.
