Earlier this summer, the Environmental Protection Agency (EPA) released its final rule to allow gasoline blended with up to 15% ethanol (E15) to receive a year-round 1 psi Reid Vapor Pressure (RVP) waiver during the summer months. Before this final rule, E15 was not allowed to be sold in some regions of the United States from June 1 to September 15. The inability to sell E15 year-round has been an obstacle for those fuel retailers who sell E15 or have considered including E15 as an option for consumers.

In addition to the RVP waiver for E15, EPA also made several changes to the Renewable Identification Number (RIN) compliance system under the Renewable Fuel Standard (RFS). The final rule requires public disclosure when RIN holdings exceed specified thresholds and additional collection of data to improve market transparency and enhance EPA oversight. The EPA initially had proposed a number of reforms that would have reduced incentives for retailers to continue buying, blending and selling renewable fuels.

As part of the rulemaking process, NACS worked with a broad group of industry stakeholders to oppose unnecessary changes to the program. In its comments on the original proposal, NACS cautioned the EPA about making changes to the RIN market that would have injected significant uncertainty into the marketplace.

In looking at both pieces of the final rule, NACS believes the EPA hit the sweet spot. The agency’s action in removing a barrier to year-round sales of E15 is a positive step forward in providing retailers more flexibility in offering renewable fuels to consumers. NACS supports the EPA taking a careful and cautious approach to changes to the RINs market by focusing on disclosure and oversight of the compliance system.