Fuel Industry Groups Urge Trump to Back Long-Term Fix for E15 and Refinery Exemptions
Ethanol, refining, retail fuel, and trucking sectors unite behind call for year-round E15 sales and reform of refinery exemptions
A broad coalition representing ethanol producers, oil refiners, fuel marketers, travel plazas, truck stops, and convenience store retailers is urging President Donald Trump to support legislative action that would finally provide long-term certainty around two of the most contentious issues in U.S. fuel policy: year-round E15 sales and the administration of Small Refinery Exemptions (SREs). In a joint letter sent Dec. 4 (link), the groups warned that the unresolved regulatory landscape is undermining investment, planning, and fuel-supply stability nationwide.
The organizations — including the American Petroleum Institute, Growth Energy, the Renewable Fuels Association, SIGMA, NATSO, and the National Association of Convenience Stores — emphasized that while their sectors often disagree on policy, they share a common objective: ensuring affordable, reliable liquid fuels for American consumers. That goal, they wrote, is being complicated by a patchwork of seasonal restrictions, unpredictable regulatory waivers, and region-specific gasoline requirements that continue to hinder the distribution and sale of E15.
BACKGROUND: Why Year-Round E15 Has Become a Central Fuel-Policy Fight
The RVP Problem at the Heart of the Issue
The core legal barrier to year-round E15 remains the Reid Vapor Pressure (RVP) limit, a Clean Air Act requirement aimed at reducing smog during summer months. Congress granted a 1-psi RVP waiver for E10 in 1990 — long before E15 was contemplated — but did not extend that waiver to E15. As a result, retailers cannot legally sell E15 during the June 1–Sept. 15 ozone-control season in many parts of the country without special exemptions.
EPA Attempted a Fix — Courts Reversed It
In 2019, the Trump administration’s EPA attempted to resolve the issue by granting E15 the same 1-psi waiver as E10.
But in 2021, the D.C. Circuit Court of Appeals struck down the rule, saying EPA lacked authority to extend a waiver Congress had written specifically for E10. The decision reinstated the summer prohibition and set off four years of market instability.
Midwest Governors’ Petitions Added New Complexity
A group of governors subsequently petitioned EPA under a Clean Air Act provision to opt their states out of the RVP waiver entirely, forcing refiners to supply a uniform low-RVP fuel that makes E15 compliant year-round. EPA approved the petitions — but delayed implementation. That delay created split fuel specifications between the Midwest and the rest of the country, something refiners, retailers, and marketers have warned could raise costs and complicate supply chains.
Why Industry Wants Congress to Step In
The letter to President Trump reflects a growing industry consensus: only a nationwide, legislative solution will solve the recurring E15 problem.
Fuel Fungibility
The U.S. fuel system depends on nationwide uniformity. Differing state and regional gasoline specifications complicate:
• refinery production schedules
• pipeline and terminal logistics
• blending decisions
• equipment and inventory planning
A single federal rule allowing national, year-round E15 would remove operational inefficiencies now burdening the system.
Investment Certainty for Retailers and Ethanol Producers
Retailers say they cannot justify upgrading tanks, dispensers, and signage when they are unsure whether E15 can legally be sold every summer.
Ethanol producers, in turn, struggle to plan output, contract sales, and make capital investments without clarity on long-term demand.
Refiners Also Support Stability
Though refiners have historically questioned certain ethanol policies, many now favor a national E15 standard because it would:
• eliminate arbitrary summer sales bans
• reduce the need for emergency waivers
• simplify compliance across states
• allow consistent production and blending schedules
Refiners emphasized in the letter that inconsistent policy — not ethanol itself — is the destabilizing factor.
Emergency Waivers: A Temporary Patch, Not a Solution
For the past three summers, EPA has issued emergency waivers allowing nationwide E15 sales.
But these waivers:
• are discretionary
• often come late in the planning cycle
• do not address underlying RVP compliance issues
• perpetuate year-to-year uncertainty
The coalition argues that the unpredictability is now more harmful than the seasonal restriction itself.
Political Dynamics
Year-round E15 consistently draws support from Midwest Republicans and Democrats, corn-state governors, and farm groups.
Some oil-state lawmakers have resisted stand-alone fixes, preferring broader RFS reforms.
The unusual breadth of signatories to the Dec. 4 letter signals a rare moment of alignment across ethanol, refining, and retail sectors, strengthening industry pressure for a legislative solution.
INDUSTRY CALLS FOR ACTION ON SRE REFORM
Beyond E15, the groups urged President Trump to back congressional reforms to the Small Refinery Exemption program. They argued the current structure has created “winners and losers,” distorts the marketplace, and contributes to volatility in compliance markets. A narrower, more consistent SRE framework, they said, would restore predictability for fuel suppliers and reduce uncertainty for consumers.
THE PUSH FOR A DURABLE, NATIONAL FUEL POLICY
The coalition concluded that the absence of nationwide E15 and the unstable administration of SREs together undermine investment, blending decisions, distribution planning, and the stability of national fuel supply chains. Clear legislation resolving both issues would “provide a more coherent and durable policy foundation” and improve confidence across the entire transportation-fuel sector.
“Our organizations remain committed to supporting constructive solutions as Congress evaluates next steps,” the letter said, underscoring the significance of the unusually broad alliance pressing for action.
