Chemicals, Refined Products, Aromatics, Gasoline

January 21, 2025

Trump executive order signals continued support for emergency E15 waivers

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HIGHLIGHTS

Would continue Biden policy of seasonal E15 availability

Visibility a 'big deal' for biofuels industry still seeking permanent legislative fix

US President Donald Trump outlined his intent to continue using emergency waivers to approve the sale of E15 fuel, leaving the US biofuels industry to keep pushing for a permanent legislative solution.

In "Declaring a National Energy Emergency," one of a slew of executive orders released Jan. 20, the Trump administration instructed the Environmental Protection Agency administrator, after consultation with the Department of Energy, to "consider issuing emergency fuel waivers to allow the year-round sale of E15 gasoline to meet any projected temporary shortfalls in the supply of gasoline across the Nation."

That would represent a continuation of the policy used by the Biden administration, which approved emergency waivers for the sale of gasoline blended with 15% ethanol in 2022, 2023 and 2024, repeatedly citing gasoline price pressures resulting from Russia's invasion of Ukraine as the reason to approve the higher blend. In 2024, EPA Administrator Michael Regan noted that extending the 1-psi Reid Vapor Pressure waiver that currently applies to E10 gasoline to E15 would result in "no overall change in evaporative emissions," dismissing prior smog concerns that served as the original basis for the ban on E15 sales in hotter summer months.

The EPA estimates E15 is roughly 25 cents/gal cheaper than E10.

In February 2024, the Biden EPA also issued a rule carving out permanent year-round E15 availability for Midwestern states beginning in the summer of 2025, the result of a yearslong procedural tussle with the governors of eight states in the region.

While many of Trump's energy-related executive orders were early attempts to directly undo the Biden administration's climate agenda, an incoming Trump official, previewing the actions Jan. 20, underscored Trump's policy of increasing domestic fuel supplies and decreasing consumer energy costs.

The rationale for the wider declaration of a national energy emergency is that high costs are unnecessary, the official said. "They are caused by policy," he added.

The White House could not be reached for comment.

Industry thankful, but pushing for legislation

Biofuels and ethanol industry trade groups were quick to thank the incoming administration for the pledge to continue the emergency E15 waivers. Still, those groups continued to lobby on behalf of a permanent legislative solution.

"We thank President Trump for directing his agencies to monitor fuel market conditions and issue emergency waivers for E15 this summer if necessary," Renewable Fuels Association CEO Geoff Cooper said in a statement. "At the same time, we renew our call on Congress to adopt legislation as quickly as possible that permanently allows year-round sales of lower-cost E15. Passing a bill would provide the market with long-term certainty and stability and make emergency waivers unnecessary."

The industry thought it had achieved its goal in December, when the year-round E15 language first introduced in a bill proposed in 2023 by Senator Deb Fischer, Republican-Nebraska -- whose Consumer and Fuel Retailer Choice Act would have allowed for the year-round sale of E15 -- was included in the first draft of Republican Speaker of the House Mike Johnson's continuing resolution to fund the government. In December, Fischer issued a press release touting her efforts at "securing" the provision for Midwestern fuel producers.

That effort was derailed by Trump and his campaign allies, including intense public criticism from incoming Department of Government Efficiency leader Elon Musk, who called for congressional Republicans to strip out large portions of the bill that did not directly involve funding the federal government through the beginning of 2025. The final pared-down measure, passed by Johnson with heavy Democratic support, did not include E15, leaving the biofuels industry to rely on another seasonal waiver in 2025.

Fischer praised Trump's order Jan. 21 and pledged to continue fighting for the legislation.

"President Trump is focused on delivering a stronger and safer America—that starts with energy independence," Fischer said in a statement to S&P Global Commodity Insights. "His executive order highlights the crucial role of year-round E15 in accomplishing that goal. I'll continue leading the charge in Congress to make year-round E15 permanent and carry out President Trump's energy agenda."

Meanwhile, one industry source told S&P Global Commodity Insights that while Trump's E15 directive would merely continue the Biden waiver policy, and it was still unclear whether the administration supported Fischer's legislation, the visibility offered by its inclusion was "a big deal" for biofuels groups.

"We're hoping it gives us some momentum and raises awareness of the policy we're talking about here," the source said.


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