RFA Asks EPA To Allow Higher Ethanol Blends In Midwest Region After Refinery Outage Leads To High Pr
On August 14, 2015, the Renewable Fuels Association (RFA) asked EPA to waive Reid Vapor Pressure requirements for E15 and to also allow E12 blending. Reid Vapor Pressure is a measure of gasoline's volatility and is regulated in the summer months to reduce health risks caused by evaporative emissions. The request by the RFA occurred in the wake of a 240,000 barrels per day (b/d) refinery outage in Whiting, Indiana that has resulted in 50 cents per gallon cost increases for gasoline in some regions. Ethanol in the Chicago wholesale market is currently $1 per gallon less than gasoline and, if gas stations began carrying E15, gas prices would be reduced by at least 5 cents per gallon, saving drivers in the Midwest about $6 million per day. The RFA argues that the outage illustrates the need to diversify the fuel supply to blunt the consumer impacts of supply availability.