Summer ethanol blend debate continues in Illinois

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[April 12, 2023]  By Kevin Bessler | The Center Square

(The Center Square) – Federal regulators have proposed a rule that would permit year-round sales of E10 gasoline in Illinois and seven other Midwest states, opening the door for expanded use of E15.

 

Last year, the governors of the eight states petitioned the federal government with a request to opt out of the regulatory waiver that allows for regular E10 gasoline to be sold during summer months.

The governors tied their request to a provision under the Clean Air Act, giving the Environmental Protection Agency 90 days to formally respond and implement the change by July 2022, a deadline that was missed.

Officials said removing the waiver would allow E15 and E10 to be made using the same gasoline blend stock, and would help expand the availability year round of E15 in multiple jurisdictions.

Illinois corn farmers and the ethanol industry are also concerned the year delay will have an impact on market certainty and request action be taken to ensure E15 remains an option in this summer’s fuel market.

“An emergency waiver for summer E15 would give consumers the option of lower cost fuel during the warmer months,” Illinois Corn Growers Association President Matt Rush said in a statement.

Patrick Kelly, senior director of Fuel & Vehicle Policy with the American Fuels and Petrochemicals Manufacturers, said there are additional costs to produce, store and distribute a so-called “boutique” Midwestern gasoline.

“The total incremental cost to supply this new boutique gasoline ranges from $500 million to $800 million each year, and a disruption could push costs to $1.1 billion,” Kelly testified to the EPA.

Kelly said the Midwest would rely more heavily on supply from Gulf Coast refineries and would be cut off from receiving available supplies from neighboring states. In the event of a hurricane, or other extreme circumstance, gasoline shortages in the Midwest could be more frequent.

The EPA enforces summertime regulations preventing ethanol blends to be sold because of concerns of smog.

Kevin Bessler reports on statewide issues in Illinois for the Center Square. He has over 30 years of experience in radio news reporting throughout the Midwest.

 

 

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