Petroleum Groups Ask EPA to Issue Alert Banning Sale of E15 as Flex Fuel (Oil Express)

Date Posted: April 21, 2015

The American Fuel & Petrochemical Manufacturers (AFPM) and the American Petroleum Institute (API) are urging EPA to issue an enforcement alert prohibiting the sale of E15 as flex fuel.

"Several retailers have engaged in the practice of relabeling E15 as flex-fuel during the summer months to circumvent the Clean Air Act Reid Vapor Pressure (RVP) limits," AFPM and API wrote in an April 3 letter to EPA Administrator Gina McCarthy.

E15 blends do not receive the same 1 psi RVP volatility waiver that is granted to E10.

Under current regulations, summertime volatility restrictions are in place from June 1-Sept. 15.

"Some ethanol groups have actively endorsed the practice of relabeling E15 as flex-fuel to circumvent the RVP controls, potentially creating both environmental degradation and confusion in the marketplace," the groups wrote in the letter.

"Both the EPA regulations and the Clean Air Act could not be clearer. As EPA has consistently recognized, E15 does not qualify for the one pound waiver and must meet the summertime RVP requirements to be legally sold.

"The attempt to label and sell E15 as 'flex-fuel' is an unlawful attempt to bypass the existing RVP regulatory requirements. If this labeling is allowed, then theoretically, the same logic could apply to virtually any blend of ethanol and gasoline such as E10," the letter continued.

"AFPM and API believe that clarity as to the illegality of this practice of relabeling E15 as flex-fuel is needed immediately in light of the impending summertime gasoline season. ... [W]e look forward to your taking action on this important environmental issue in advance of the June 1 effective date at retail for summer gasoline standards," the letter added.

It was not clear whether EPA had responded to the letter.

In 2012, EPA gave final approval to the use of E15 in 2001 and later model year vehicles. Meanwhile, flex fuel vehicles can use any ethanol blend up to 85%.

In response to the letter, Renewable Fuels Association President Bob Dinneen said "API is digging pretty deep into its bag of tricks with this latest effort to thwart consumer choice and protect its monopoly over the fuel pump. But this is really pretty simple; E15 is an approved fuel for all flex-fuel vehicles and some marketers have chosen to offer this fuel to only those customers," he said.

"That's how at least a segment of the market has responded to the overly burdensome and complex regulatory regime EPA has established for E15. If API is truly concerned about this, they should join our effort to secure volatility parity for E10 and E15. Problem solved!" he added.

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