<article><p class="lead">A leading oil industry group for the first time has endorsed a bill to allow year-round sales of 15pc ethanol gasoline (E15), lending its support to one of the biofuel industry's highest priorities.</p><p>The formal endorsement by the American Petroleum Institute on Tuesday increases the chances of a legislative breakthrough on a long-simmering dispute that has pitted the oil sector against biofuel producers and farmers. But the last-minute introduction of the bill could make it harder to pass during the few remaining weeks of the lame duck session of the US Congress.</p><p>Biofuel industry groups have long lobbied to revise part of the Clean Air Act that offers a special volatility waiver exclusively to 10pc ethanol gasoline (E10). The waiver allows E10 — and only E10 — to have a Reid Vapor Pressure that is 1 pound per square inch higher than existing federal emission volatility limits in summer.</p><p>The bipartisan bill, sponsored by US senator Deb Fischer (R-Nebraska), would allow any gasoline blends containing 10pc "or more" ethanol to qualify for the waiver. That change would allow E10 and E15 to take advantage of a federal waiver that enables year-round fuel sales across the US. </p><p>Oil industry groups had fought prior efforts to enable year-round sales of E15, warning that the fuel blend could damage engines of older vehicles, marine engines and outdoor power equipment. But the American Petroleum Institute last week said it was supporting legislation to resolve the issue, given the likelihood of uncertainty and political disputes otherwise resurfacing every summer.</p><p>Among the oil industry's concerns is a pending <a href="http://direct.argusmedia.com/NewsAndAnalysis/Article/2327175">petition</a> from eight states — including Illinois, Kansas, Minnesota and Wisconsin — that seeks to support summertime E15 sales. The petition asks the US Environmental Protection Agency (EPA) to end the existing volatility waiver for E10. That would put E10 and E15 on the same footing and require fuel suppliers in those states to switch to lower-volatility fuel blendstocks. </p><p>But industry officials believe it will be logistically challenging and costly to offer different gasoline blendstocks just to those states. Fischer's bill, which as of Tuesday was co-sponsored by six Democrats and eight Republicans in the Senate, would offer "much-needed consistency and long-term certainty to the marketplace," American Petroleum Institute downstream vice president Will Hupman said. </p><p>The biofuel groups Growth Energy and the Renewable Fuels Association also support the bill, along with major agricultural groups such as the National Corn Growers Association. But other oil industry groups have yet to formally take a position. The refining group the American Fuel &amp; Petrochemical Manufacturers said it was still reviewing the policy with its members.</p><p>President Joe Biden's administration has yet to take a position on the bill, but it has supported summertime E15 sales by using emergency powers. EPA administrator Michael Regan has said the agency <a href="https://direct.argusmedia.com/NewsAndAnalysis/Article/2370430">aims to respond to the petition</a> from the eight states in time for the summer driving season.</p><p class="bylines"><i>By Chris Knight</i></p></article>
