Last week Congress approved a resolution overturning the Biden administration’s move to regulate thousands of waterways, while the Environmental Protection Agency has issued an “emergency waiver” allowing gas stations nationwide to sell E15 this summer, which the marine industry has long opposed.
The Congressional action regarding waterways stems from the administration’s move to expand regulations by redefining “waters of the United States” that are protected by the Clean Water Act. Opponents, including many in the marine industry, say the move was a gross expansion of federal authority, an encroachment on states’ rights, and an assault on private lands. The regulations were designed to cover thousands of streams, wetlands, ponds and private properties, and could harm businesses, developers and farmers.
This matter for years has been a minefield between environmental groups pushing for expansion of the rules and developers, farmers and industries that say expansion is onerous and overburdening.
The rule defining which waters are protected by the Clean Water Act was issued by executive order when President Biden took office, so it’s likely that the repeal action will be vetoed.
It’s notable there is also a related case pending in the Supreme Court. The case was brought by an Idaho couple who are fighting a requirement that they obtain a permit to build a home near a lake after the EPA decided that part of their property was regulated wetland. Arguments were heard in Sackett v. EPA last October, and a decision is reportedly expected in the next few months.
So the battle continues.
Meanwhile, blenders of ethanol in gasoline are taking a victory lap, with the EPA last week issuing an “emergency waiver” allowing gas stations to sell E15 during the summer.
You may recall that the rule preventing the sale of ethanol blends higher than 10% from June 1 to Sept. 15 in two thirds of the country was to prevent smog conditions in warmer temperatures. Now the EPA has flipped, claiming that allowing the higher blend shouldn’t have a significant impact on air quality. But there’s more.
The EPA also contends its E15 move is to counter a spike in gas prices at a time of market supply uncertainty because of Russia’s invasion of Ukraine. Moreover, EPA claims its action will reduce prices at the pump, encourage energy independence and support agriculture while boosting demand for the Midwest-based ethanol industry, which for years has lobbied for year-round sales of E15.
“Allowing E15 sales during the summer driving season will not only help increase fuel supply, but will support American farmers, strengthen U.S. energy security and provide relief to drivers across the country,” said EPA Administrator Michael Regan.
Of course, there is some unacknowledged offset. The U.S. Department of Energy has found that vehicles travel 3% to 4% fewer miles on a gallon of E10 and 4% to 5% less on E15 than on straight gasoline. Moreover, the American Fuel & Petrochemical Manufacturers points to data from the Energy Department’s Energy Information Administration.
“The U.S. market is well-supplied with gasoline, which EIA data make clear,” said Chet Thompson, the trade group’s president and CEO. “:Therefore, we’re anxious to see how EPA is going to justify this decision in light of statutory limitations and the agency’s own understanding of emergency criteria, which require a finding of inadequate domestic supply in a specific geographic area.”
Ethanol policy is especially important in the Midwest, where most of the roughly 200 blenders are located. In 2022, those refineries produced more than 15.4 billion gallons of ethanol, and the industry consumed about 45% of the nation’s corn crop. About a third of that is grown in Iowa and Illinois, politically important states.
Bottom line: Because we can expect continued failure of adequate warning labels at gas pumps, it will again be essential for dealers to remind customers to avoid misfueling with E15.