Ethanol Blog

LINCOLN, Neb. (DTN) -- Ethanol interest groups are making a push to convince the state of California to speed up the implementation of E15 in the state, in comments sent to the California Air Resources Board this week.

The American Coalition for Ethanol told CARB that current regulations don't cover E15 specifications or regulatory enforcement, so the state should categorize E15 as a gasoline-grade fuel, given the recent authorization of E15 sales through the passage of AB 30 (California bill allowing E15) and 14 years of "safe, real-world use" nationwide.

"We urge CARB to move quickly with a clear statement that the sale of E15 is allowed in California, and provide guidance promptly, so California fuel marketers can begin offering the low-cost and clean fuel to consumers immediately," Ron Lamberty, ACE chief marketing officer, said in comments.

Lamberty emphasized that E15's safety and compatibility are well established through U.S. Environmental Protection Agency and U.S. Department of Energy research and more than a decade of everyday use by millions of motorists.

"E15 is no longer a new, untested product," Lamberty said. "We now have 14 years of safe, real-world use in unmodified tanks, lines and dispensers at thousands of retail stations."

ACE urged CARB to classify E15 as a standard gasoline grade to avoid "unnecessary costs and consumer confusion." That classification would be consistent with federal regulations, the group said.

"Treating E15 as an alternative fuel would increase the cost for retailers and confuse drivers, limiting its use and reducing the air-quality benefits for California," Lamberty said.

ACE told state regulators that California's fueling infrastructure is already mostly compatible with E15.

"The short answer is there should be little or no cost for the majority of California's fuel terminals and retailers," Lamberty said in comments.

Lamberty said E15 typically retails 5 to 15 cents below E10, helping reduce fuel costs for drivers.

RENEWABLE FUELS ASSOCIATION

In comments submitted today to CARB, the Renewable Fuels Association voiced its support for "immediately" expanding access to E15 in California.

RFA urged CARB to clarify remaining questions regarding the immediate implementation of AB 30, while working in parallel to update state gasoline regulations to allow E15.

"The legislative intent of AB 30, which was signed into law on Oct. 2, is crystal clear," RFA President and CEO Geoff Cooper, said in written comments in response to an Oct. 14 CARB workshop.

"The bill, which passed unanimously out of both the assembly and senate, authorizes E15 as a legal fuel in California, with the intent that retailers may immediately offer the fuel if they choose to do so. In addition, Gov. (Gavin) Newsom has indicated the urgency of allowing California drivers to access E15, directing CARB more than one year ago to 'prioritize resources that would allow for the expeditious completion of this process.' Thus, to honor the statutory purpose and intent of AB 30 and the governor's directive, RFA strongly encourages CARB to prioritize immediate implementation of AB 30 so that California fuel retailers can offer E15 as soon as possible."

OTHER POINTS

In the comments, the RFA made several other points.

CARB's list of frequently asked questions issued on Nov. 10, RFA said, offers "clear and actionable" guidance for entities that wish to offer E15, with the lone exception of one question focused on vapor-recovery equipment.

RFA said vapor-recovery equipment offered by one manufacturer is already certified by CARB for E15.

"RFA strongly recommends that CARB adopt E15 by updating the fuel specification in the California reformulated gasoline regulation and not through establishing an alternative fuels specification in regulation," the group said in a news release on Wednesday.

"California's existing gasoline supply chain infrastructure has a very high degree of readiness for E15. There are no current -- or anticipated -- significant barriers at the terminal or retail station level that would restrict the distribution or blending of E15."

E15 REGULATORY CLARITY

The RFA said that with "regulatory clarity" adoption of E15 could occur quickly at retail stations in California.

"Consumers stand to benefit from meaningful cost savings as E15 becomes more widely available in California," RFA said.

"A faster adoption rate will expand access to lower-priced gasoline options and help stabilize or reduce statewide fuel prices by increasing overall supply."

In addition, RFA said the E15 misfuelling mitigation strategies required by the EPA have "worked effectively" to prevent misuse and misfuelling and that no additional state requirements are necessary.

RFA said it disagrees that there are 5,100 underground storage tanks and 2,000 additional piping systems in the state that are not compatible with E15, as suggested by CARB staff during the workshop.

IOWA RENEWABLE FUELS ASSOCIATION

The Iowa Renewable Fuels Association also submitted written comments to CARB.

IRFA said it "strongly encouraged" CARB to avoid "an unnecessary delay" and "embrace a proactive approach" to enabling E15 availability across the state.

"E15 can help reverse the increasingly high cost of fuel that has put a financial strain on motorists in California if the correct regulatory framework is established," the group told CARB.

"IRFA urges CARB to create a safe and secure regulatory pathway for E15 to expeditiously achieve widespread consumer access."

The group also asked the board to learn from Iowa's experience on E15.

"There is no need for California regulators to step into the unknown or to worry about the risk/reward of the various options you are considering," the IRFA said.

"Iowa is happy to share our decade-plus experience with E15 and our decades of experience with ethanol blends of all levels."

The IRFA said E15 sales in Iowa this year will "more than double" sales in 2024, reaching nearly 500 million gallons, or 33% of Iowa's fuel sales.

"Iowa has shown that when regulations allow consumers the option of E15, they choose it," the IRFA said.

"In Iowa, E15 is typically priced 10 to 20 cents below E10. IRFA believes the E15 discount in California should be larger than in Iowa, as California has essentially put a 'carbon price' on fuel. Increasing the ethanol content by 50% leads to a big carbon reduction. As such, we would expect the E15 discounts in California to be 30 to 40 cents per gallon."

Todd Neeley can be reached at todd.neeley@dtn.com

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