MCGA comments on EPA plan
Written by Jonathan Eisenthal
Today, the Minnesota Corn Growers Association (MCGA) provided testimony in response to a U.S. Environmental Protection Agency (EPA) plan that would allow for year-round E15 sales in eight Midwestern states, including Minnesota. MCGA also urged lawmakers to adopt a permanent solution to allow for year-round E15 nationwide.
At a virtual hearing, MCGA board member Jim Kanten, a farmer from Milan, testified on the plan, which would take effect in 2024 if approved.
Kanten described how much E15, commonly marketed as Unleaded 88, benefits consumers and farmers like him. He also emphasized Minnesota’s momentum when it comes to E15 sales, which would be threatened by the inability to market the fuel for use in all gasoline vehicles during the summer.
At the end of last year, Minnesota had nearly 430 fueling stations that offered E15, with an estimated expansion this year to almost 475 locations. This expansion comes in large part thanks to a grant program offered by the state of Minnesota with support from the Minnesota Corn Research & Promotion Council.
Last year, E15 sales in Minnesota exceeded 105 million gallons. Drivers showed their willingness to move over to the Unleaded 88 dispenser, drawn largely by an average price 17 cents below regular unleaded. Consumers also approve of the lower carbon emissions and the higher octane benefit.
[More: Find an E15 station near you.]
“The biggest obstacle to continuing the positive momentum for higher ethanol blends in Minnesota would be a disruption of sales of E15 during the summer months,” Kanten said. “Data shows that for the 2018 summer driving season — which is the most recent year where E15 sales were not allowed in the summer — sales of E15 dropped nearly 60%. Further, even when sales are allowed in September, it takes months to build back to sales volume levels before the summer ban was put into effect. This represents a significant amount of carbon and air pollution that could have been avoided with year-round sales of E15 enabled.”
While offering his testimony on behalf of the plan, Kanten also urged EPA officials to consider taking action to make sure that E15 sales don’t hit a speed bump this summer.
“The governors’ petition to remove the gasoline volatility waiver would provide much needed certainty and consistency for E15 sales beginning in 2024,” he said. “However, the immediate need is the 2023 summer driving season. We strongly support granting the governors’ petition, but we also ask EPA to use every tool at the agency’s disposal to help ensure there is no disruption for the 2023 summer driving season.”
Also today, Gov. Tim Walz joined a group of Midwest governors in urging EPA Administrator Michael Regan to grant an emergency waiver to allow for E15 sales during summer 2023. The group said in a letter that the market conditions that justified last summer’s emergency action still exist today.
To read the latest ethanol policy updates, visit the Minnesota Corn blog.
