Refiners Threaten Litigation if One-Pound RVP Waiver is Extended to E15 Blends

The major refining groups sent a letter to Acting EPA Administrator Andrew Wheeler in early February threatening litigation if the agency goes through a proposal to expand the sales of E15. Specifically, the refining groups told the Acting Administrator that EPA does not have the authority under the Clean Air Act to grant an RVP waiver for E15 blends. Granting the RVP waiver would clear the way for year-round sales of E15.

Congress established the one-pound RVP waiver under the Clean Air Act but limited it solely to blends between nine and ten percent ethanol. Since Congress created the waiver, only Congress can change it. Currently, E15 can only be used during the winter driving season where it meets RVP limitations. However, during the summer driving season when gasoline volatility increases, E15 cannot be sold because it no longer meets federal RVP requirements without the one-pound waiver. The RVP waiver effectively limits E15 to boutique fuel status.

The Trump Administration promised to expand the RVP waiver to E15 as a consolation to farmers who have been hit hard by international trade barriers. In the event EPA extends the RVP waiver to E15, opponents are expected to file an injunction to bar the agency from implementing the change until the federal courts decide whether it is within the agency’s authority to do so. It is still uncertain whether the upcoming EPA proposal will include RIN trading limitations designed to prevent credit speculation to stabilize the biofuel credit market. EPA’s proposed rule is expected to be published later in February.