The US’s $66B E15 bonanza: new study finds big boost for US GDP with E15

Growth Energy released a study conducted by ABF Economics that found that nationwide access to E15, a 15 percent ethanol blended fuel, could save drivers billions in annual fuel costs, create new jobs, and return billions to the U.S. economy. 

Specifically, the data show that a nationwide transition to E15 would save consumers $20.6 billion in annual fuel costs, and put an additional $36.3 billion in income into the pockets of American households. Let’s toss in an additional 188,000 jobs, $66.3 billion for the U.S. GDP, and you have something that’s pretty good news for the nation and something so appealing for the Corn Belt that you wonder why the state of Iowa has not fallen to their floors, slain in the spirit, speaking in tongues, prostrate in the presence of the works of the Lord.

On many occasions we have wondered how a nation can embrace 30 proof Triple Sec for the liquor cabinet and pooh-pooh E15 fuels for their cars, even though the E15 in the car is one heck of a lot better for Americans and their livers. Sometimes we would like to change the name of the species from, Home Sapiens (“Man the Wise”) to Home Sapiens Nisi Petroleo (“Man the Wise Excepting the Case of Petroleum’). Sigh.

We’re delighted to share the results of the study, rue the absence of affordable, available feedstock to contemplate E30 or E85, today, and wish for a better world.

Yep, those gas prices are high and didn’t have to be

As Growth Energy observed “The release of the study follows months of record-high gas prices across the country and President Joe Biden’s emergency waiver to allow the sale of E15 for the 2022 summer driving season to address those prices. Thanks to the availability of E15, drivers found savings of up to nearly a dollar per gallon at the pump by filling up with this higher blend of biofuel.  

The savings this past summer

It’s not all in the future — some of the consumer savings are already achieved. Following an April 12 announcement by President Biden, the U.S. Environmental Protection Agency issued a series of emergency waivers allowing E15 (gasoline containing 15 percent ethanol) to be sold during the 2022 summer driving season. Without this action, E15 could not have been used in most of the country from June 1 to September 15. An analysis by the Renewable Fuels Association found that an additional 194 million gallons (mg) of E15 were sold during the summer as a result of the Biden administration’s waivers, saving American consumers $57 million.

E15’s plodding but virtuous progress

Ah, E15, the Gilligan and Skipper of renewable fuels, you love them, wish them joy, yet they never get off the dang island. 

Progress, there’s been some. This study may help. Growth Energy notes that E15 is currently sold at over 2,700 stations across 31 states, and drivers have chosen the biofuel blend to fuel 35 billion miles total. That’s not one heck of a lot of growth, or energy for that matter, given that E15 is approved for cars 2001 and newer — more than 96 percent of cars on the road.

It’s frustrating. Round up the usual suspects.

The complete report

It’s all here.

The E15 backstory

The Hollywood Inside True Story, here.

The report’s backstory

ABF Economics examined the consumer savings and economic implications of expanding E15 use to a year-round nationwide basis consistent with President’s announcement on sale of E15 and EPA’s subsequent series of emergency vapor pressure waivers. The report leveraged June 2021 economic impact research using updated summer retail sales data from OPIS across 29 states (May-August 2022). According to OPIS data, the average price of E15 over the May through August (post EPA Waiver) period was 16 cents per gallon below that of regular unleaded (E10) gasoline. These savings were then applied to EIA annualized gasoline consumption data below to calculate savings to consumers and associated economic impact.

Reaction from the stakeholders

“The price of gas remains top of mind for American families who don’t want to lose access to a low-carbon, low-cost choice at the pump,” said Growth Energy CEO Emily Skor. “Over the summer, E15 saved drivers up to nearly a dollar per gallon at the pump in some areas, with savings averaging to $0.16 per gallon across the country. Today’s study shows that expanded, year-round access of this higher biofuel blend can provide a much-needed boost to the farm economy and even greater savings to American families.”