South Dakota politicians are psyched for year-round E15. Here's what it means for you.

Lisa Kaczke
Argus Leader

South Dakota's elected officials applauded the announcement that year-round E15 fuel will be permitted by the U.S. Environmental Protection Agency. 

U.S. Rep. Dusty Johnson celebrated in a YouTube video, tearing apart red tape as a symbolic gesture of the E15 bureaucracy and saying, "Freedom is a beautiful thing and now consumers have that freedom to put what they want in their gas tanks."

Meanwhile, U.S. Sen. Mike Rounds took to Facebook to announce the "great news" about E15.

“It’s an opportunity to share with the rest of the country just how good ethanol is in terms of improving octane ratings in fuel," Rounds said. "This is something that will lead to better markets for our producers in South Dakota."

The EPA announced last week that E15 fuel, a gas blended with 10.5 to 15 percent ethanol, would be granted a waiver to be sold year-round.

Why is the year-round E15 decision significant? 

President Donald Trump directed the EPA in October to lift the ban on E15. The EPA's summertime ban stems from the agency's concern about increased smog, and was supported both environmentalists and the oil industry. The American Petroleum Institute has indicated that it plans to challenge the EPA's E15 decision in court. 

"EPA has acted outside its statutory authority in granting year-round E15 and rushed through the rulemaking process in order to meet an arbitrary deadline. This premature policy attempts to push E15 into the market before it is ready," Frank Macchiarola, a vice president at API, said in a statement.

E-15 gasoline is available at the Kum and Go on W 11th Street on Tuesday, June 4 in Sioux Falls.

The EPA's move removes "a very significant barrier" that prevented many retail gas chains from selling E15 during summer, said Geoff Cooper, CEO and president of the ethanol advocacy group Renewable Fuels Association. 

"Clearing away that barrier and allowing retailers to sell this fuel year round like any other fuel, we think is going to provide a significant boost to the marketplace and its going to drive greater usage of E15," Cooper said. "We really do think that this is going to break down the door to greater use of E15, and that's good thing for corn growers and economies that are reliant on agriculture like South Dakota."

The Missouri-based Renewable Fuels Association believes that short-term benefits from selling E15 year round will be modest, but a boost will be seen in the long term, and E15 could become as common in the marketplace as E10 is today, he said. That will be good for both ethanol and corn demand.

Selling E15 year round is important for the environment, the economy, energy security and farmers, according to Doug Berven, vice president of corporate affairs at Sioux Falls-based ethanol maker Poet. E15 can have a global impact because it offers a market for farmers and a lower gas price for consumers, while reducing greenhouse gases and reducing chemicals coming out of a vehicle's tailpipe, according to Berven.

"The environment is a global concern, and wherever you can lower your emissions in one place, lowers it for everybody," Berven said.

More:Trump's EPA chief was in town. Here's how local corn growers welcomed him.

Who can and can't use E15? 

Conventional vehicles newer than 2001 can use E15 fuel, according to the EPA. 

But motorcycles, vehicles older than 2001, off-road vehicles such as boats and snowmobiles, and engines of equipment such as chainsaws and lawn mowers can't use E15, according to the EPA.

Motorcycle advocates have opposed year round sales of E15, arguing that more E15 in the marketplace will increase the risk of misfueling by consumers. The American Motorcyclist Association asked the EPA in March to not lift the summertime ban on E15, and after the EPA made its E15 announcement last week, the association urged motorcyclists to use extra care when refueling.

"We are extremely disappointed that this significant and controversial change is being made. The restrictions that had been in place served as a protection for motorcyclists and for the environment," AMA Vice President for Government Relations Wayne Allard said in a statement.

Both Cooper and Berven said they don't expect there to be problems with motorists using the wrong fuel. Cooper pointed out that an E15 pump is required to be clearly labeled with the vehicles that can use it.

"E15 has been in the marketplace for seven years now, and it is available today in about 1,700 stations. ... We just haven't really heard any concerns or certainly haven't seen any issues associated with misfueling or confusion at the pump," he said.

What are elected officials saying? 

U.S. John Thune has long advocated for E15 and he said he’s glad the administration was willing to see it through. The EPA’s decision means consumers will have more choices for a lower-cost, cleaner fuel during summer, he said in a statement.

“While there’s no doubt this will reinforce our energy independence and will be well-received by producers in the Midwest and Great Plains, there is more that can and should be done to further strengthen renewable fuels and the broader agriculture economy,” he said.

Earlier:Trump will make good on a promise to Iowa farmers, open door to year-round E15

Gov. Kristi Noem, who serves as the vice chair of the Governors' Biofuels Coalition and was co-chair of the Congressional Biofuels Caucus, said she's met with President Donald Trump and other administration officials to discuss E15 and urged the EPA to expand ethanol opportunities. Noem called the EPA’s E15 announcement a “step in the right direction” and said it will stabilize the agriculture economy by expanding market access.

“South Dakota is a national leader in ethanol production," Noem said in a statement, "and this move by the EPA will remove unnecessary federal regulations and present further market opportunities for producers, bringing benefits directly to our farmers and local economies, easing the impact of high gas prices on our pocketbooks, and reducing our dependence on foreign oil."