The Renewable Fuels Association (RFA) is urging the Trump administration to take swift action to expand the use of ethanol in the nation’s fuel supply, arguing that the move could help ease rising gasoline prices for American consumers.
In a letter sent to Doug Burgum, the Interior Secretary who chairs the administration’s National Energy Dominance Council, RFA President and CEO Geoff Cooper called for a series of regulatory changes that would allow greater use of ethanol blends such as E-15 gasoline. Cooper said increasing ethanol volumes in gasoline could provide near-term relief as global energy markets push crude oil and gasoline prices higher.
“Adding larger volumes of low-cost ethanol to gasoline is a proven solution for reducing fuel prices and helping to insulate the U.S. market from global supply shocks,” Cooper wrote. “A series of simple deregulatory actions could rapidly unleash billions of gallons of additional fuel volume, providing relief at the pump for hardworking American families.”
Cooper pointed to recent price differences between ethanol and gasoline to support the group’s argument. As of March 6, ethanol was selling at a wholesale price 84 cents per gallon lower than gasoline — a discount of about 31 percent. Retail blends containing 15 percent ethanol have recently sold for about 27 cents per gallon less than standard E10 gasoline, according to the association.
The RFA is asking federal regulators to take several steps aimed at expanding ethanol use during the summer driving season. Among the proposals, the group called on the EPA to issue emergency waivers allowing E-15 to be sold nationwide during the summer months under a 1-psi Reid vapor pressure tolerance. The association also asked regulators to extend similar flexibility to E10 gasoline in regions that previously opted out of the waiver program.
In addition, the RFA urged the EPA to eliminate current “misfueling mitigation plan” requirements tied to E-15 sales and instead adopt a simpler rule requiring stations that sell E-15 to also offer either ethanol-free gasoline or E-10 at at least one clearly marked pump.
The group also recommended that federal regulators presume compatibility between E15 and most fuel storage and dispensing equipment installed after 2005, including underground storage tanks, piping, hoses and nozzles.
Cooper said removing regulatory barriers could allow the fuel to be stored and distributed using existing infrastructure, increasing domestic fuel supply while reducing costs for motorists.
“The most effective way to prevent additional increases in gas prices across the U.S. is by expanding and diversifying the domestic fuel supply, including ethanol made from our nation’s farm fields,” Cooper wrote. “Knocking down regulatory barriers and allowing E-15 to be stored and distributed in existing infrastructure throughout the summer will lower fuel costs for Americans and strengthen the market’s resilience against global supply disruptions.”
