April 16, 2025
Midwest states have long championed the use of E15—a gasoline blend containing 15% ethanol—for its promise to lower fuel costs, reduce greenhouse gas emissions, and support rural economies. However, efforts to enable year-round sales of E15 have faced many regulatory hurdles and push back for over a decade.
What Is RVP?
Reid Vapor Pressure (RVP) is a measure of how easily gasoline evaporates, indicating the fuel’s volatility. This matters because more volatile fuels evaporate faster, especially in warm weather, which can contribute to the formation of ground-level ozone, or smog.
To protect air quality—particularly in the summer when ozone pollution can peak—the Environmental Protection Agency (EPA) limits the RVP of gasoline sold during these warmer months. Generally, gasoline must meet a cap of 9.0 psi (pounds per square inch) from June 1 through September 15, unless an exemption applies.
Emergency Waivers and Their Implications
Historically, E15 sales have been limited in summer due to concerns over their higher volatility and potential to worsen smog. To bypass this seasonal restriction, emergency waivers from EPA have frequently been issued.
In a renewed effort to move from temporary waivers to permanent solutions, eight Midwest governors formally petitioned EPA to remove the one-pound RVP volatility waiver for E10. EPA approved this petition in February 2025, with implementation set to begin on April 28, 2025.
However, not all states are ready. Kansas, South Dakota, and Ohio, for example, have requested one-year delays to adapt infrastructure and compliance mechanisms. With the uncertainty created by these opt-outs, these staggered timelines have now also injected more complexity into fuel markets, prompting stronger calls for a nationwide, consistent solution.
In response, a bipartisan coalition of senators reintroduced the Consumer and Fuel Retailer Choice Act in February 2025. The bill aims to create a national standard for year-round E15 sales—eliminating the need for annual waivers and state-by-state patchwork regulation.
Opting Out of the One-Pound RVP Waiver Rule: Challenges Ahead
While the decision by some Midwest states to opt out of the one-pound RVP waiver was made to facilitate year-round E15 availability, it presents its own set of challenges.
Under current federal policy, fuel with 10% ethanol (E10) is granted a waiver to exceed the 9.0 psi RVP limit during the summer. Removing this waiver requires a new fuel formulation that meets the summer RVP standards—a change that is not without consequences:
- Increased Production Costs: Refiners must create a specialized gasoline blend to comply with the new standards. Estimates suggest this could raise fuel production costs by 8 to 12 cents per gallon.
- Supply Chain Strain: Producing and distributing a region-specific blend complicates logistics and raises the risk of localized shortages or price spikes, especially during high-demand periods.
The Path Forward: Legislative Action and National Policy
To overcome these regulatory and logistical barriers, a unified legislative approach is critical.
The Consumer and Fuel Retailer Choice Act proposes a straightforward fix: extend the RVP waiver to E15 nationwide, effectively removing seasonal restrictions on its sale. If enacted, the bill would:
- Stabilize the Market: A clear, nationwide policy would provide certainty for fuel producers, retailers, and consumers.
- Lower Prices: Broad E15 availability could help reduce fuel costs at the pump.
- Support U.S. Agriculture: Ethanol demand—driven largely by corn—would rise, directly benefiting farmers across the Midwest.
Conclusion
The push for year-round E15 sales in the Midwest reflects broader tensions in U.S. energy and environmental policy—balancing regional innovation with national consistency, economic growth with environmental protection. Emergency waivers and fragmented state actions have served as temporary fixes, but they fall short of the long-term stability the industry needs.
With a legislative solution on the table, the coming months will be critical in determining whether the U.S. can move beyond patchwork policy toward a more cohesive and resilient energy future—one that ensures cleaner, more affordable fuel options for all.