E15 Motor Fuel: Energy Marketers of America Letter to Congressional Leadership

The Energy Marketers of America (“EMA”) sent a December 7th letter to the Congressional Leadership addressing the sale of gasoline containing 15 percent ethanol (“E15”).

The letter was address to:

• The Honorable Charles Schumer
• The Honorable Mitch McConnell
• The Honorable Nancy Pelosi
• The Honorable Kevin McCarthy

EMA writes in support of the Consumer and Fuel Retailer Choice Act of 2022 (S. 5145) which would allow the sale of E15 to be sold throughout the year.

EMA describes itself as a federation of 47 state and regional trade associations representing family-owned and operated small business energy marketers throughout the United States. The members are stated to supply 80 percent of all finished motor fuel and heating fuel products sold nationwide including renewable hydrocarbon biofuels, gasoline, diesel fuel, biofuels, heating fuel, jet fuel, kerosene, racing fuel, and lubricating oils. The energy marketers represented by EMA are stated to own and operate approximately 60,000 retail motor fuel stations and supply motor fuel to an additional 40,000 gas stations.

The Arkansas Oil Marketers Association is a state member of EMA.

Ethanol is commonly blended with gasoline. Such petroleum-biofuel blends are described by a letter representing the first initial of the biofuel. For example, “E” for ethanol. This is followed by a number that usually describes the approximately biofuel percentage of the overall blend - E10 or E 15. The United States Environmental Protection Agency defines E15 as gasoline blended with 10.5 percent to 15 percent ethanol.

The December 7th letter supports the year-round sale of E15 with certain qualifications:

• The fuel should be compatible with existing underground storage tanks (“USTs”) (E15 may not be compatible with certain UST system components)
• Congress should support small businesses by providing sufficient funding for UST system compatibility upgrades
• Current 50/50 cost sharing formula for the United States Department of Agriculture’s Higher Blends Infrastructure Incentive Program (“HBIIP”) does not provide a strong enough incentive for small energy marketers to make compatibility upgrades
• Congress should appropriate sufficient funding for the HBIIP to cover 80% of capital expenditures associated with UST system upgrades
• Fifty percent of the grant program funding should be set aside for small, independent fuel marketing businesses with less than 500 employees

A copy of the December 7th letter can be downloaded here.