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Kansas will not join states ensuring E15 access

  • Market: Agriculture, Biofuels, Oil products
  • 01/04/26

Kansas will not move to join a group of farm states transitioning next year to a boutique summer gasoline blend, which would have ensured continued access to a higher-ethanol blend in the state.

Seven Midwestern states have approval to eventually move a lower-volatility summertime fuel that would allow retailers to keep selling both typical 10pc ethanol gasoline (E10) and blends with up to 15pc ethanol (E15). Kansas governor Laura Kelly (D-Kansas), frustrated by an impasse about federal biofuel policy, said earlier this year that she would give "strong consideration" to submitting a request by 1 April to join those states starting in 2027.

But much has since changed in fuel markets. The US-Israel war with Iran has sent pump prices sharply higher, and President Donald Trump's administration has tried to contain the fallout by issuing emergency waivers that streamline summertime fuel rules across the country. Those waivers allow year-round sales of E15 in areas where it would have otherwise been limited while also effectively delaying the Midwestern states' fuel change — first planned for 2025 and then for 2026 — to next year.

"With the granting of the temporary E15 waiver, E15 will continue to be sold through 2026", Kelly's office said. "While the governor strongly considered the permanent opt-out, she recognizes that it would not take effect until 2027 and felt that it is a decision best left to the next administration."

A new governor will take office next year in Kansas.

The Clean Air Act exempts E10 from summertime smog rules that would otherwise prevent its sale but does not extend the same treatment to E15 despite similar air quality impacts. The Midwestern bloc as a workaround had won approval to opt out of the special treatment for E10, effectively putting E10 and E15 on equal footing by requiring less-volatile but costlier blendstocks for both.

The farm-state governors saw the workaround as a way to ensure continued E15 access no matter how federal policy changes. But the transition also threatened higher pump prices during peak summer driving season, a political risk even before the war.

Kansas deciding not to join the other opt-out states comes despite a lack of progress in Congress on permanently exempting E15 from summertime smog rules, leaving decisions around access each summer to regulators. A task force of US lawmakers has struggled for months to reach agreement on biofuel legislation that would allow E15 sales year-round, in part because some oil refiners have objected to earlier proposals that would restrict their ability to win exemptions from biofuel blend mandates.

E15 is typically cheaper than E10, although the blend is not sold at the vast majority of US fuel stations. Advocates blame the lack of availability on regulatory uncertainty deterring retailers from investing in higher ethanol blends.


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