EMA Joins Petition To Delay EPA’s Permanent RVP Waiver In 7 Midwestern States

EMA last week joined the American and Petrochemical Manufacturers Association (AFPM) and ten additional state and national trade associations to petition the EPA to delay a permanent year-round waiver of the one-pound Reid Vapor Pressure (RVP) limit on E10.

The waiver was requested in a letter signed by eight Midwestern governor’s last April, including Nebraska, Iowa, Illinois, Kansas, Minnesota, North Dakota, South Dakota and Wisconsin.

The Clean Air Act allows governors to seek such a waiver if a determination is made by a state or states that the one-pound RVP limit leads to an increase in air pollution.

The EPA claims that the language of the Clean Air Act requires the agency to provide the waiver upon request and demonstration of increased air pollution attributable to the one-pound waiver limit.

EMA opposes the RVP waiver request because it would require two new boutique gasoline blendstocks (regular and premium) that would reduce the fungibility of gasoline in the seven-state region, create supply bottlenecks, limit supply generally, raise prices at the pump and lead to the year-round sale of E15 in the affected states.

The petition filed by the coalition of associations asserts that the language of the Clean Air Act does not require the EPA to issue an RVP waiver upon request.

Instead, the Clean Air Act gives the EPA discretionary authority to deny an RVP waiver based on the impact a waiver would have on gasoline supply.

The petition made it clear that an insufficient supply of gasoline would result from the waiver due to the loss of fungibility of gasoline from new boutique fuel requirements that would raise significant infrastructure and logistic challenges in the seven-state area.

The coalition is asking for a delay given the insufficient supply of gasoline and serious harm to U.S. fuels markets and consumers that would result from a waiver as the 2023 summer driving season approaches.

State energy marketer associations joining the petition to delay the one pound RVP waiver include: the Illinois Fuel & Retail Association, the Indiana Food & Fuel Association, Michigan Petroleum Association / Michigan Association of Convenience Stores, the Nebraska Petroleum Marketers & Convenience Store Association, the North Dakota Petroleum Council North Dakota Petroleum Marketers Association, the South Dakota Petroleum and Propane Marketers Association and the Wisconsin Petroleum Marketers & Convenience Store Association.

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