The Biden administration took emergency action Friday to allow drivers in Iowa and other states to buy gasoline with 15% ethanol, making the lower-cost fuel available during peak summertime driving.
The U.S. Environmental Protection Agency said the emergency waiver allows summer sales of E15, which renewable fuel groups say can cost 27 cents less a gallon than gasoline with 10% ethanol, called E10. President Joe Biden came to Iowa a year ago to announce the same waiver for last summer.
“This action will provide Americans with relief at the pump from ongoing market supply issues created by Russia’s unprovoked war in Ukraine by increasing fuel supply and offering consumers more choices at the pump,” the EPA said in a news release Friday.
The news was welcomed in Iowa, the nation’s leading producer of corn and ethanol. About half the state’s annual corn crop is used to make the renewable fuel and a high-protein animal feed.
“This is a huge win for Iowa farmers and our ethanol industry and proves that even our biggest adversaries can’t ignore the advantage biofuels brings to our country’s economy and national security,” Gov. Kim Reynolds said in a statement. “Now all Americans will have access to cheaper, cleaner-burning fuel this summer.”
Iowa’s congressional delegation, all Republicans, also welcomed the move, but some chided the administration for failing to take it earlier.
“I am glad that President Biden finally approved E-15 sales this summer,” U.S. Rep. Randy Feenstra said in a statement. “I’ve repeatedly elevated the importance of this decision for Iowa, and just last week, I urged EPA Administrator Michael Regan to expedite the final verdict.”
“I’m thrilled that my concerns were heard,” he said.
Related:EPA proposes allowing year-round high-blend ethanol sales — but not as soon as Iowans wanted
E15 is restricted in some states over the summer in order to meet federal clean air standards. Ethanol groups say those restrictions are due to outdated government regulations. EPA said Friday its research shows “no significant impact” on emissions when E15 summer waivers are provided.
POET, the South Dakota-based ethanol producer with a dozen Iowa plants, said the regulations restricting E15 summer sales are nonsensical.
“The Biden administration’s decision will keep E15 flowing when Americans need it most,” Joshua Shields, senior vice president of corporate affairs, said in a statement.
EPA, in announcing the waiver Friday, said the move would “help protect Americans from fuel supply crises by reducing our reliance on imported fossil fuels, building U.S. energy independence, and supporting American agriculture and manufacturing.”
A bipartisan group of Reynolds and seven other Midwest governors is pushing the EPA to provide permanent year-round access to E15, and the federal agency has proposed a rule making the change. But it’s not slated to take effect until 2024.
The oil industry is pressuring Reynolds and other farm-state state governors to withdraw their request to the EPA, saying it would boost refiners’ costs by as much as $800 million, forcing them to create a boutique gasoline and make other costly investments. Part of those costs likely would be passed onto consumers.
U.S. Sens. Chuck Grassley and Joni Ernst, Iowa Republicans, tweeted Friday that the emergency waiver is good for American motorists and U.S. farmers.
“This move will not only help corn growers and ethanol producers, but also each American looking to save at the pump,” Grassley tweeted.
Ernst said it’s a good first step, but a permanent solution is needed. Iowa’s delegation has supported federal legislation that would grant a permanent waiver allowing year-round E15 sales.
Dennis Friest, a farmer and Iowa Corn Growers board president, said in a statement that the EPA’s move would save consumers money while “also creating market access for Iowa corn farmers as the top ethanol and corn producing state.”
A Renewable Fuels Association analysis shows that E15 averages $3.41 a gallon nationally, 27 cents less than E10. The Washington, D.C., ethanol lobbying group’s report looked only at E15 and E10 prices. Gasoline without ethanol typically costs more.
Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at deller@registermedia.com or 515-284-8457.
Read More: EPA allows lower-cost E15 gas sales during summer’s peak travel time