EPA Releases E15 Expansion Rule While Undermining RFS RIN Rules

The long-awaited proposal allowing gasoline blended with up to 15% ethanol to be sold year round has been released by the EPA in draft form. This is good news for marketers offering E15 and would allow the blend to be sold year-round to all vehicles 2001 and newer. Currently, during summertime RVP period (June 1-September 15), sales are not allowed in light of the statute limiting the 1 pound RVP waiver only to E10. There will be a public hearing March 29 and comments on the proposed rule due April 29. FUELIowa supports the RVP waiver portion of this rule; however, we oppose the RIN reform proposal. RINs represent Renewable Identification Numbers which are the credits the EPA designed to ensure refiners satisfy their obligations under the Renewable Fuels Standard (RFS). 

“It is ironic that EPA would propose changes to expand sales of ethanol while simultaneously proposing changes that would undermine the RFS which was designed to expand sales,” said Dawn Carlson, CEO of FUELIowa and RINAlliance which is supportive of year-round E15. “The RIN reform proposal would disincentivize marketers who are successfully blending with ethanol and biodiesel and be counterproductive to the nation’s pursuit of energy independence. Our office has helped marketers, small and large, all across the U.S. to achieve success in blending with biofuels and RIN management as the law intended.” With no evidence of RIN market manipulation, it is clear that EPA is proposing these rules to provide a small number of refiners an opportunity to avoid their obligation under the RFS, as they did when EPA granted the small refinery exemptions. All parties interested in the success of the RFS should come together to oppose the RIN market reform proposal. 

Click Here to review the FUELIowa News Release.