ACE remains laser focused on increasing ethanol use, and there are several reasons to be optimistic we will make meaningful progress on this front in 2023.
Momentum is building in support of achieving our most urgent priority; to ensure nationwide and uninterrupted market access for E15 year-round. First, EPA is acting on petitions from the governors of Iowa, Illinois, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin to allow E15 use in these 10 Midwestern states which represent the lion’s share of the potential E15 market. The Agency has told us they intend to approve these requests prior to the June 1, 2023 summer driving season. These governors have submitted data to EPA showing that reducing fuel volatility in their states will significantly cut evaporative emissions and pollution. Second, the likelihood that 10 or more states will have lower vapor pressure fuel requirements than most of the country has motivated the American Petroleum Institute (API) to join ACE and our biofuel allies who have been pushing hard for legislation in Congress to permanently allow E15 use across the entire nation. This major development has accelerated efforts to generate more support in Congress to enact bipartisan legislation prior to June 1. If action has not been taken on this legislation by the ACE fly-in March 29 and 30, we will make it a major priority for our Hill visits.
When the E15 market is indeed nationwide, it will eventually move billions of gallons of new demand, yet E85 presents an opportunity to dramatically increase ethanol use today.
Speaking of California, ACE has worked closely to support Pearson Fuels, who has partnered with more than 275 retail locations to sell E85 across the state, with more than 100 additional retail stations under contract to open in the next two years. According to Pearson officials, California likely reached 100 million gallons of E85 use in 2022 displacing at least 73 million gallons of gasoline. In 2022, most retail E85 stations partnering with Pearson Fuels priced E85 more than $2.00 per gallon below retail unleaded gas in California. This means a FFV driver could’ve been completely immune from record-high gas prices California experienced last year because they had the option to use E85.
To keep this momentum going, ACE will continue capitalizing on the infrastructure incentives for higher blends being made available from USDA and the recently enacted Inflation Reduction Act.
