EPA Issues Update to National Fuel Waiver

Tuesday, April 14, 2026 – EPA issued a new letter yesterday to the nation’s governors, setting forth supplements to the fuel waiver announced by the Agency on March 25, 2026, under Clean Air Act section 211(c)(4)(C)(ii)(I). In the yesterday’s letter, EPA makes two regulatory clarifications and extends the federal waiver of state “boutique” fuel requirements by an additional 20 days, effective April 14, 2026.

The combined effect of these coordinated waivers is to permit the production and distribution of gasoline containing 9 to 15 percent ethanol at a single common Reid Vapor Pressure (RVP) standard of 10 psi nationwide — eliminating the patchwork of differing state volatility requirements that would otherwise restrict fuel fungibility across distribution systems.

The two new clarifications address butane blending and CBOB redesignation. First, EPA is waiving limitations on butane blending applicable to Reformulated Blendstock for Oxygenate Blending (RBOB) under 40 C.F.R. § 1090.220(e), allowing butane to be blended into RBOB on the same terms currently permitted for Conventional Blendstock for Oxygenate Blending (CBOB).

Second, EPA is interpreting 40 C.F.R. § 1090.1010(b)(2)(iii) to permit distributors to redesignate CBOB as RBOB, thereby enabling fuel fungibility between conventional gasoline and RFG covered areas.

EPA continues to ground its action on the hostilities in the Middle East disrupting Strait of Hormuz tanker traffic, reduced U.S. refining capacity (down 490,000 bpd since January 2020), and refinery utilization already running at 90.8 percent — leaving minimal surge capacity. EPA stated its intent to renew the fuel waivers through September 15, 2026, or until the supply situation normalizes.