Letter to Michael Regan, EPA Administrator - Gov. Reynolds leads Multi-Governor letter to EPA laying groundwork for Midwest E-15 solution

Letter

Dear Administrator Regan:

Our states lead the nation in the production of low-carbon ethanol, and we have witnessed firsthand the important environmental, economic, and social benefits generated by a healthy and thriving renewable fuels industry. Thus, we were extremely disappointed by the recent D.C. Circuit Court decision overturning the Environmental Protection Agency's 2019 regulation that finally facilitated year-round sales of E15 (gasoline blended with 15% ethanol) in conventional gasoline markets.

Fuel marketers and retailers, renewable fuel producers, the U.S. Department of Agriculture, and
state governments have invested hundreds of millions of dollars in recent years to expand
consumer access to low-cost, clean-burning fuels like E15. Not only does the recent court decision
threaten to strand these public and private investments, but it also jeopardizes the progress we've
made toward cleaning up our fuel supply and reducing emissions from transportation.

In the wake of the court decision, we are exploring all of our options to ensure retailers are able to
sell E15 to consumers all year long without interruption. It is our understanding that the EPA
Administrator has the authority under Section 211(h) of the Clean Air Act to promulgate
regulations that would put E10 and E15 on equal footing with regard to volatility limitations, thus
re-opening the door to unencumbered, year-round sales of both fuels.

Specifically, Section 211(h)(5) of the Act establishes that upon the request from the Governor of
a State, the Administrator shall apply volatility limitations to gasoline-ethanol blends that exclude
the benefit of the 1-pound per square inch (psi) Reid vapor pressure (RVP) waiver provided to E10 in Section 211(h)(4). If approved, it is our understanding that such a request would result in a
volatility limitation of 9 psi for both E10 and E15 in conventional gasoline areas, thereby
establishing a level playing field and allowing retailers to use the same gasoline blendstock for
both blends all year long. We understand that some states have already requested, and secured
approval, of such action by the Administrator, meaning the recent court decision will not impact the ability of retailers in their states to sell E15 year-round.

Further, we note that Section 211(h)(5) of the Act requires the Administrator to promulgate
regulations enacting such a request from a Governor within 90 days of receiving notification from
a Governor. Thus, if we were to submit a request for exclusion from the 1-psi ethanol waiver this
summer or fall, it is our understanding that the Administrator could promulgate rules acting on the
request well before the 2022 summer high ozone season.

While we are not formally submitting the notification required under Section 211(h)(5)(A) today,
we do want to express our interest in potentially pursuing this approach. We would like to open a
dialogue with the Agency on this issue and we are respectfully requesting your guidance regarding
the process for securing an exclusion from the 1-psi ethanol waiver. Specifically, we seek
additional detail from EPA on what "supporting documentation" must be furnished by the
Governor of a State to support a request for an exclusion from the waiver, along with any other
information that the Agency feels would be helpful as we strongly consider pursuing this option.

Thank you for considering our request. We look forward to speaking with you soon about our
options for protecting the substantial investments our states have made in clean fuels, and ensuring
consumers in our states can continue to purchase E15 all year long.

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