Following reports that gas prices are on the rise, U.S. Senator Joe Donnelly Monday urged President Trump to take an important step towards addressing the price surge by reducing regulatory burdens around the blending of biofuels. Current regulations on Reid Vapor Pressure (RVP) prevent most retailers from selling American-made fuels like E15 during the summer months, driving up the cost to consumers at the pump.
Donnelly said, in part, in his letter, “I am writing today out of significant concern for rising gas prices and their impact on families and businesses in Indiana. When Hoosier families and businesses have to spend more to fill-up their gas tanks to commute to work or to make the day’s deliveries, it strains our local communities and economies…One step that would help mitigate the circumstances causing an increase in gas prices would be to lift the current restrictions on the year-round sale of fuels containing higher blends of biofuels…I ask that you commit to working to remove the problems with this regulation.”
Todd Becker, CEO, Green Plains Inc., said, “Indiana farmers and consumers alike benefit from E15 the majority of the year, but an outdated Washington regulation takes this more affordable fuel option off the table during the busy summer driving season. Providing access to E15 year round is a commonsense step to save consumers money and drive investment in our rural communities like Bluffton and Mount Vernon.”
Rob Walther, VP of Federal Advocacy at POET, said, “E15 ensures economic gains for farmers and consumers alike. We greatly appreciate all the work Senator Donnelly has done on this issue and his leadership in Washington.”
In March 2017, Donnelly, along with Agriculture Committee members Senator Deb Fischer (R-NE) and Chuck Grassley (R-IA) introduced the Consumer and Fuel Retailer Choice Act. The bill would extend the Reid vapor pressure (RVP) waiver to ethanol blends above 10 percent. This would increase market access opportunities for higher blends of ethanol. It would allow retailers across the country to sell E15 and other higher-ethanol/gasoline fuel blends year-round, increasing regulatory certainty and eliminating confusion at the pump.
To read Donnelly’s full letter to President Trump, see below or click here.
Monday, May 22, 2018
Donald J. Trump
President of the United States
The White House
Mr. President,
I am writing today out of significant concern for rising gas prices and their impact on families and businesses in Indiana. When Hoosier families and businesses have to spend more to fill-up their gas tanks to commute to work or to make the day’s deliveries, it strains our local communities and economies. Rising gas prices also make it more difficult for families to do the simple things like enjoying a family night out or buying a new pair of shoes for their kids’ school year; businesses have fewer resources available to create new jobs and many are forced to cut back their operations.
According to the U.S. Energy Information Administration, average gas prices are expected to reach almost $3 a gallon next month, while averaging at least $2.90 a gallon during the during the April to September summer driving season. That is a 20 percent increase in fuel costs over last summer’s average of $2.41 a gallon. With the Bureau of Transportation Statistics reporting that the average American household spends approximately 9.3 percent of their income on transportation costs, a 20 percent increase in gas prices would place significant strain on the budgets of families and businesses. And with ever increasing instability around the world, those increases could be driven even higher.
One step that would help mitigate the circumstances causing an increase in gas prices would be to lift the current restrictions on the year-round sale of fuels containing higher blends of biofuels. Currently, in spite of lower evaporative and tailpipe emissions that come with a switch from fuel with 10 percent ethanol (E10) to fuel with 15 percent ethanol (E15), an Environmental Protection Agency (EPA) regulation regarding the Reid Vapor Pressure (RVP) of fuel prevents retailers in most areas of the country from selling fuels like E15 from June 1 to September 30 each year. Reducing this regulatory restriction, particularly before June 1, would help Hoosier families and business by reducing gas prices. It would also help the economy by increasing income in rural communities struggling with increased market volatility and difficult economic conditions.
As you know, I have been leading the fight to fix the RVP regulation for years, and I applauded your reported decision to work towards the same goal. American families and businesses have struggled with a difficult economy for too long. We cannot afford to put further economic growth at risk because of rising gas prices. I ask that you commit to working to remove the problems with this regulation. Your commitment and work towards fixing the RVP regulations would be a great win for Hoosier families, businesses, and rural communities.
Sincerely,
Joe Donnelly
U.S. Senator – Indiana
