Kansas Corn Growers Association leaders were disappointed with EPA’s proposed delay of a Midwest governors’ plan require lower-volatility gasoline in their states, a plan that would have ensured drivers in those states continued to have year-round access to fuel with 15 percent ethanol. The delay creates unnecessary market uncertainty for E15 during this year’s summer driving season.
Kansas Governor Laura Kelly had originally signed the Midwest governors’ letter to EPA, but removed Kansas in July, citing concerns that the Missouri governor had not signed on. Missouri has since joined the letter, but Kansas has not yet returned to the coalition. With the Kansas City market in both states, it is key that both Kansas and Missouri are in the Midwest governors’ coalition, according to KCGA CEO Greg Krissek. Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin are currently in the bipartisan coalition.
“In Kansas, we are dealing with two issues. First, EPA absolutely should not delay the implementation of the Midwest governors’ coalition request until 2024, and we are working with NCGA and other states to correct EPA’s delayed implementation” Krissek said. “Unfortunately, Kansas is on the outside, looking in. We will continue to work with Governor Kelly and are hopeful that Kansas decides to once again be part of these efforts to allow year-round fuel choice to consumers in Kansas and would expand a large potential market for our Kansas-made fuel in Kansas City.”
Losing year-round availability of E15 fuel will hurt Kansas farmers and ethanol producers, but consumers will also feel the economic impact at a time of already high inflation.
“We need year-round E15, and if the governor doesn’t rejoin the coalition, Kansas consumers will lose the benefit of a lower-cost, higher-quality fuel during the peak driving months,” Krissek said. “If Kansas doesn’t join this effort, nearly 100 stations in Kansas that have made the investment to offer E15 and nearly two dozen stations that are adding infrastructure to offer E15 will be adversely impacted. Many of these stations are small Kansas businesses.”
The National Corn Growers Association expressed concern over the one-year delay in implementation and the market uncertainty for E15 in 2023.
“These governors used authority under the law to ensure their consumers maintain access to low-cost, low-emissions E15,” said National Corn Growers Association President Tom Haag. “Higher ethanol blends lower emissions, save drivers money and allow for consumer choice. With the proposed delay in implementation, we urge EPA to use existing authority to prevent a disruption in E15 availability this summer.”
EPA approved 15 percent ethanol blends, or E15, in 2011 for use in all 2001 and newer vehicles, which account for more than 96 percent of vehicles on the road today. Retailers have increased availability of E15, often marketed as Unleaded 88, to offer consumers choice and lower fuel costs, as well as increase the fuel supply. E15 has been sold year-round for the past four years, but outdated regulatory barriers continue to hinder permanent full-market access to E15.
Last year, as the nation faced fuel supply challenges, President Biden directed EPA to use existing agency authority to prevent a disruption in E15 availability between June 1 and Sept. 15. As a result, continued availability of E15 increased the nation’s fuel supply and saved drivers an average of 16 cents per gallon nationwide.
In April of 2022, several Midwest governors informed EPA of their decision on lower-volatility gasoline. The Clean Air Act gives governors the authority to act on these matters as they consider their states’ consumers and air quality. The Act gives EPA 90 days to approve the governors’ plans. However, EPA took 10 months to issue the proposal, which now includes a delay in implementation until 2024.
Categories: Kansas, Crops, Corn