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EMA Calls for Permanent Year-Round E15 Waiver

 

In a recent letter to U.S. Representatives Randy Feenstra (R-IA) and Stephanie Bice (R-OK), Rob Underwood, President of the Energy Marketers of America (EMA), outlined the organization's strong support for policies aimed at enhancing energy security, economic growth, and consumer options in the fuel sector. Representing a federation of 48 state and regional trade associations, EMA emphasized the critical role of family-owned energy marketers in America's fuel distribution network.

A key focus of the letter was EMA's endorsement of legislation to establish a permanent nationwide waiver for year-round sales of E15 gasoline—a blend containing 15 percent ethanol. This position was formalized last October when EMA's Board of Directors voted in favor of the measure. The bipartisan Nationwide Consumer and Fuel Retailer Choice Act (S.593/H.R.1346) would extend the Reid Vapor Pressure (RVP) waiver currently applied to E10 blends, preventing the creation of fragmented "boutique" gasoline markets in Midwestern states that have opted out of the E10 waiver.

Underwood highlighted the potential downsides of such boutique markets, including disrupted gasoline supplies, increased costs, and reduced fuel fungibility. These issues could ultimately drive-up prices at the pump for consumers. "Passing this permanent waiver is essential to maintaining a stable and efficient fuel market," he stated, noting that EMA has consistently raised alarms about the risks to supply chains and affordability.

The letter also advocated for increased investments in the Higher Blends Infrastructure Incentive Program (HBIIP), an initiative launched during the first Trump Administration. To date, HBIIP has allocated $537 million to support 543 projects across 29 states, providing cost-share grants for upgrades at fueling stations and distribution facilities. These enhancements enable the handling of higher biofuel blends like E15, E85, and B20 biodiesel.

Underwood argued that bolstering HBIIP would expand access to American-made biofuels, generate well-paying jobs in rural areas, diversify energy supplies, and shield farmers from market fluctuations. "This program has proven its value in building out the infrastructure needed for a more resilient energy future," he wrote, calling on Congress to prioritize additional funding to accelerate these benefits.

On the topic of small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS), EMA maintains a neutral position regarding future issuances. However, the organization firmly opposes the reallocation of previously waived SREs, warning that such moves could introduce unnecessary volatility into the market. When non-exempt refiners must compensate for exempted volumes, prices for Renewable Identification Numbers (RINs) can spike unpredictably, complicating efforts by EMA members to offer competitive pricing. Given their reliance on branded and unbranded supplies and limited flexibility, downstream marketers could face significant challenges, including disruptions in local fuel distribution and threats to economic viability. "Any reallocation must carefully consider the downstream impacts to avoid harming the very communities we serve," Underwood emphasized.

Underwood expressed EMA's eagerness to collaborate with Representatives Feenstra and Bice who are co-chairs of the E15 Council, as well as congressional leadership including House Speaker Mike Johnson, Senate Majority Leader John Thune, Senate Minority Leader Chuck Schumer, and House Minority Leader Hakeem Jeffries. "We stand ready to advance these policies for a prosperous future," he concluded, reiterating the importance of balanced approaches that support energy marketers, agricultural producers, and everyday consumers.







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