The Environmental Protection Agency announced on February 4, 2026, its approval of Ohio's request to reinstate a regulatory waiver that permits gasoline blended with 10 percent ethanol, known as E10, to have a higher volatility limit during summer months. This action, detailed in the Federal Register, reverses a prior decision to eliminate the waiver, which had been set to take effect later in 2026. The reinstatement addresses concerns about fuel supply disruptions in the state, highlighting the ongoing tension between air quality standards and economic considerations in the fuel industry. By allowing E10 to exceed standard volatility limits by 1 pound per square inch, or psi, the waiver aims to simplify fuel distribution without compromising broader environmental goals.
Background and Regulatory Context
The Clean Air Act, specifically section 211(h)(5), grants the EPA authority to manage gasoline volatility through Reid Vapor Pressure, or RVP, standards. RVP measures how easily gasoline evaporates, with higher levels contributing to ozone formation and air pollution during warmer months. Typically, summer gasoline must not exceed 9.0 psi RVP to reduce emissions. However, a longstanding waiver has allowed E10 blends to reach 10.0 psi, recognizing that ethanol increases volatility but also supports renewable fuel use.
Ohio's journey with this waiver began in June 2022, when Governor Mike DeWine requested its removal to potentially lower fuel costs and improve air quality. The EPA approved this on February 29, 2024, via a rule published in the Federal Register (89 FR 14746), setting an effective date of April 28, 2025. This move aligned with efforts in other states to phase out the waiver, driven by environmental groups advocating stricter controls on volatile organic compounds.
However, industry stakeholders raised alarms about supply chain complications. Removing the waiver would require Ohio-specific gasoline blendstock, distinct from that used in surrounding states like Indiana and Michigan, which retain the waiver. This could lead to higher costs and potential shortages, as refiners might struggle to produce and distribute a unique formulation.
Key Players and Recent Developments
Governor DeWine has been central to these shifts. Following the 2024 approval, he petitioned in January 2025 for a delay, citing economic impacts on consumers and the fuel sector. The EPA responded on March 20, 2025, postponing the removal to April 28, 2026 (90 FR 13093). Then, on October 31, 2025, DeWine formally requested reinstatement, arguing that the waiver's elimination would disrupt regional fuel markets without significant environmental benefits.
The EPA's review process, governed by 40 CFR 1090.297, requires evaluating such requests based on air quality data, supply feasibility, and compliance with federal standards. In approving the reinstatement, EPA Assistant Administrator Aaron Szabo noted that it eliminates the need for specialized blendstock in Ohio, aligning the state with neighboring regulations. The effective date is set 90 days after notification to the state on January 28, 2026, resulting in implementation on April 28, 2026.
This decision does not affect other Midwest states, as specified in 40 CFR 1090.215(b)(3), which maintains their volatility limits independently.
Legal and Policy Implications
From a legal standpoint, this action underscores the flexibility built into the Clean Air Act. Section 211(h)(5) allows states to opt out or reinstate waivers based on local needs, provided they meet EPA criteria. Precedents include similar waivers in states like Illinois and Minnesota, where reversals have occurred due to market dynamics. For instance, a 2023 EPA rule for several states (88 FR 44458) delayed waiver removals amid supply concerns, setting a pattern for Ohio's case.
Politically, the reinstatement reflects competing interests. Environmental advocates, such as the Sierra Club, have criticized waivers for potentially increasing emissions, arguing they undermine ozone reduction goals under the National Ambient Air Quality Standards. Conversely, fuel industry groups like the American Petroleum Institute support reinstatement, emphasizing supply stability and reduced costs for consumers. Ohio's request highlights how state-level economic pressures can influence federal environmental policy, especially in regions dependent on agriculture and ethanol production.
Short-term implications include smoother fuel distribution starting in summer 2026, potentially stabilizing prices in Ohio. Long-term, it may encourage other states to reassess their waivers, influencing national fuel standards as the EPA reviews broader reforms under the Renewable Fuel Standard program.
Perspectives on the Decision
Stakeholders offer varied views. Proponents, including Ohio's agricultural sector, praise the move for supporting corn-based ethanol demand, which benefits farmers. As Governor DeWine stated in his October 31, 2025, letter, 'Reinstatement will prevent unnecessary disruptions to our fuel supply chain and protect consumers from higher prices.' Critics, however, contend it prioritizes short-term economics over long-term air quality, with potential increases in ground-level ozone affecting public health.
The EPA's neutral stance emphasizes regulatory compliance, noting no impact on other states' requirements. This balance illustrates the agency's role in mediating between environmental protection and practical implementation.
In conclusion, the EPA's reinstatement of Ohio's 1-psi waiver marks a pragmatic adjustment to federal fuel regulations, driven by state-specific needs. Key takeaways include the reversal of a planned removal, alignment with regional standards, and ongoing debates over emissions versus supply economics. Looking ahead, potential next steps could involve further EPA reviews of volatility rules nationwide, especially as electric vehicle adoption grows and renewable fuel policies evolve. Challenges may arise if air quality data prompts renewed scrutiny, while debates continue on balancing clean air objectives with market realities. Stakeholders will likely monitor implementation in 2026 for any unintended effects on fuel availability or environmental outcomes.
