EMA Journal • Fall 2025 • EMA Today

Legislation Introduced to Deem E15 Compatible with Existing UST System Infrastructure and Remove E15 Labeling Requirement

Over this summer, bicameral and bipartisan legislation was introduced by Midwestern lawmakers known as the Ethanol for America Act,1 which would deem E15 compatible with existing UST system infrastructure and which would remove the E15 fuel label requirement at the gas pump. Reps. Adrian Smith (R-NE) and Nikki Budzinski (D-IL) led the charge in the House while Sens. Joni Ernst (R-IA) and Amy Klobuchar (D-MN) introduced a companion bill in the Senate.

The Ethanol for America Act, if enacted, would direct the EPA to finalize within 90 days a 2021 proposed rule to approve existing fuel infrastructure as E15 compatible, removing the need for marketers to upgrade or replace equipment to offer E15 for sale, and to eliminate the E15 pump label to eliminate regulatory confusion. A coalition of lawmakers also sent a letter to EPA Administrator Lee Zeldin, advocating for the swift promulgation of the 2021 proposed rule, highlighting that E15 can save consumers up to 30 cents per gallon without requiring significant infrastructure changes for retailers.

Since 1988, EPA UST system regulations have required the fuel to be stored in UST systems to be compatible with the system’s materials of construction. Underground storage tanks are one of the many components in a UST system for which gas station owners must ensure compatibility. In addition to UST systems, fire codes require motor fuel dispensing systems (including hoses, nozzles, swivels and breakaways) to be compatible with the type of fuel dispensed. Surveys have shown that the cost of inspecting and making necessary upgrades to bring existing UST systems into compliance with the National Fire Protection Association (NFPA) and UL specifications can cost $250,000 or more per UST system. Unfortunately, the costs to upgrade UST systems and dispensers that support E15 sales create significant economic burdens for these business owners. Additional funding is needed to ensure safe and efficient UST systems are in place to allow all fuel marketers to offer and sell E15.

This reality is supported by EPA’s January 2020 opinion titled “E15’s Compatibility with UST Systems,”2 which states, “[m]ost older and even some newer existing UST systems (which includes but is not limited to tanks, pumps, ancillary equipment, lines, gaskets, and sealants) are not fully compatible with E15 and require modification before storing E15. For example, the actual tank is often compatible with E15, but some of the many piping joints and connectors and pump, dispenser, and release detection components may not be.” Fuel compatibility is essential not only for supplying fuel to end users through existing petroleum storage and distribution infrastructure, but also to meet customer expectations for quality, performance and operability.

Minnesota’s,3 Iowa’s4 and North Dakota’s5 data include the entire UST system components: tanks, product lines, release detection components, submersible pumps, probes, drop tubes, spill buckets, dispenser hanging hardware, piping, glues, seals, gaskets and dispensers. In Minnesota alone, the estimated cost to upgrade UST systems is more than $1 billion. The Nebraska fire marshal’s6 data includes only the tank (most tanks are E100 compatible, but 381 tanks in Nebraska still need to be replaced). UST replacement costs can exceed $250,000 per UST system, which is an extremely high cost for small businesses to provide consumers with the option to purchase E10 plus blends. The introduced legislation does not provide any liability protection.

To ensure UST systems and dispensers are compatible with higher ethanol blends (E15), Congress needs to appropriate hundreds of millions for small- to medium-sized companies to make necessary upgrades. In October 2024, Sens. Joni Ernst (R-IA) and Amy Klobuchar (D-MN) sent a letter to the U.S. Department of Agriculture (USDA) requesting additional funding through the Commodity Credit Corporation (CCC) to extend the Higher Blends Infrastructure Incentive Program (HBIIP). This program helps retail store owners purchase the infrastructure necessary to provide E10 and B20 plus blends at the pump and B20 plus blends for heating fuel distribution facilities. HBIIP grants support transportation fueling, fuel distribution, and home heating oil distribution facilities, lowering out-of-pocket costs for businesses to install or upgrade fuel dispensers, storage tanks and systems, and other related equipment.

Unfortunately, the current HBIIP funding of $500 million is insufficient to support the small-business energy marketers who must make compatibility upgrades. Further, small businesses must invest significant resources to pursue HBIIP funding. The cost to hire a grant writer ranges from $5,000-$10,000, and applicants are dedicating an average of 80-plus work hours completing these applications. Small- and medium-sized businesses do not have the time or resources to compete with large corporations for USDA grants. By increasing HBIIP funding and including a preference that a portion of the funds be for the smallest businesses, energy marketers across the country can make necessary infrastructure upgrades to remain competitive.