Ethanol Industry Awaiting Verdict on Year-Round E15

(WASHINGTON, DC) Earlier this year, the Environmental Protection Agency (EPA) issued a final rule allowing the year-round sale of motor gasoline blends containing up to 15 percent ethanol (E15). The ruling increases the availability of E15 blends in the United States, which are currently sold at more than 1,800 retail fuel stations across 31 states. Most gasoline sold in the U.S. already contains up to 10 percent ethanol (E10). Ethanol acts as a fuel oxygenate to create a cleaner-burning fuel and to raise the octane rating of motor gasoline. According to the Energy Information Administration (EIA), E15 is sold at a three to ten cent per gallon price discount to E10 in most markets. Prior to the rule, the sale of E15 was prohibited during the summer driving season (June 1st to September 15th). During the summer, EPA is more restrictive on the volatility of motor gasoline introduced into the market in order to limit evaporative emissions that contribute to ground-level ozone. Although new fueling stations typically install fueling equipment that is E15 compliant, older stations may need to install new equipment to accommodate the slightly more corrosive nature of E15 gasoline. Retrofits may be cost-prohibitive if they require equipment, such as underground storage tanks, to be replaced. According to Growth Energy, more than 1,800 stations offer E15. Minnesota is home to the largest number of E15 stations with 303 stations, followed by Wisconsin (197), Iowa (187), and Florida (185).