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Thursday,
August 20, 2026 – EPA Administrator Lee Zeldin today issued a national fuel waiver
under Clean Air Act Section 211(c)(4)(C), citing extreme and unusual
fuel supply circumstances driven by ongoing Middle East conflicts and
reduced U.S. refining capacity. The waiver — a renewal and extension of
prior actions dating to March 2026 — provides immediate and near-term
flexibility for fuel marketers and distributors across the country.
What the Waiver Does
Effective August 29, 2026, the waiver:
Extends the ethanol blending limit from 10% to
15%, authorizing E15 sales nationwide Reinstates the 1 psi RVP allowance for ethanol
blends in states where it had previously been removed Waives federal RVP standards — allowing gasoline
with an RVP of up to 10 psi (when blended with 9–15% ethanol) to be
distributed and sold nationwide through August 31 Waives federal enforcement of state boutique fuel
requirements for an additional 20 days through September 15,
2026, or September 17 where SIP requirements extend beyond that
date Accelerates the transition to winter gasoline —
beginning September 1 rather than the standard September 16 date, using
the location-specific ASTM D-4814 volatility limits applicable to
September 16
Rationale Behind the New Fuel Waiver
National motor gasoline inventories remain 6% below the five-year
average for this time of year, and EIA projects inventories to remain
below the seasonal five-year range until fall 2026. Iranian attacks on
tankers transiting the Strait of Hormuz and strikes against regional oil
and gas infrastructure have disrupted global energy markets, while U.S.
refining capacity has declined by 800,000 barrels per day since January
2020. Refinery utilization currently stands at 96.2% — leaving virtually
no production cushion to absorb disruptions.
Implications for EMA Marketers
The waiver eliminates the near-term obligation to transition to
lower-volatility summer blends, preserving fuel supply volumes at a
critical time. Fuel marketers and distributors may continue selling
gasoline under the waiver's RVP standards through the applicable
expiration dates. EPA has indicated its intention to issue a further
renewal if extreme and unusual supply circumstances persist beyond the
current control period. EMA will continue to monitor for any EPA
renewal notice ahead of September 15.
Full waiver letter available at epa.gov/gasoline-standards/fuel-waivers.
For questions, contact EMA regulatory counsel at jleiter@bmalaw.net / jroman@bmalaw.net. |
