AgWired

The Environmental Protection Agency announced Thursday approval of requests from state governors to remove the 1-psi volatility waiver for gasoline-ethanol blends containing 10 percent ethanol in their states, but delays the effective date to April 28, 2025.

“After review of the emissions modeling results presented by the governors in their requests, EPA is removing the 1-psi waiver in the following states: Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin,” EPA states, adding that the delay in implementation is “due to concerns over insufficient fuel supply with an earlier effective date, consistent with statutory provisions.”

USDA Secretary Tom Vilsack previewed the announcement earlier this week at the National Ethanol Conference, adding that he believes the approval will ultimately go beyond the eight Midwestern states. “We understand higher blends need to be supported which is why I am confident that 2025 we will have E15 across the country and this summer we will likely see waivers as we have the last couple of summers,” Vilsack said in remarks. Regarding the delay until 2025, he told reporters, “I think it’s important to have the justification for the expansion locked down solid so that if there are any concerns expressed about it as often the oil industry provides, that we’re in a position to defend this as strongly as we can.”

Renewable Fuels Association President and CEO Geoff Cooper called the delayed approval a good news, bad news situation. On one hand, the EPA decision finally allows retailers in these eight states to sell E15 year-round. But on the other hand, it delays implementation until 2025, creating uncertainty and confusion about the availability of E15 this coming summer. “Summertime is just around the corner, what’s the marketplace going to do with E15 come June 1?” said Cooper. “Long term we’ve got to resolve this in a way that provides certainty in the marketplace and stability.”

RFA Chairman Erik Huschitt, CEO of Badger State Ethanol, is of the opinion that 2025 is better than never. “If we have to wait until 2025 it’s an embarrassment of our political leadership that they can’t get it done earlier,” said Huschitt. “We’ll take it in 2025…as long as we have a clear path we’ll show a little more patience.”