EPA Proposes E15 Label Changes and UST Compatibility Requirements for Ethanol Blends

The Environmental Protection Agency (EPA) has unveiled a major proposed rule that could reshape how E15—gasoline containing up to 15% ethanol—is sold and stored across the United States. Signed by Administrator Andrew Wheeler on January 5, 2021, the rule offers two starkly different paths for the fuel dispenser labels: either a redesigned label aimed at reducing consumer confusion, or the complete elimination of the federal labeling requirement. Simultaneously, the agency is proposing to ease compatibility demonstration rules for underground storage tanks (USTs) while requiring new equipment to handle ethanol blends up to 100%.

This action comes as the number of E15 stations has surged to nearly 1,800—still only about 1% of all retail fuel outlets—and as the vehicle fleet has aged out of the older models that are prohibited from using the higher-ethanol blend. But with millions of non-road engines, motorcycles, and older vehicles still on the road, the question of whether the current orange-and-black label adequately warns against misfueling remains hotly contested.

The Labeling Crossroads: Modify or Remove

Under the first option, EPA would revamp the existing label by replacing the word "Attention" with a blue-and-white design, dropping the prominent "E15" heading in favor of a straightforward "Contains up to 15% ethanol," and softening the prohibitory language from "Don't use in" to "Avoid use in." The revised label would also add "motorcycles" to the list of vehicles that cannot use E15, and clarify that flex-fuel vehicles are also permitted.

The second, more dramatic option would scrap the label entirely, relying instead on the underlying prohibition on misfueling that remains in effect. "Were EPA’s E15 label requirement to be removed, we believe that FTC’s regulations would require that E15 dispensers be labeled according to FTC’s label requirements," the agency noted, pointing to a potential gap unless the Federal Trade Commission adjusts its own rules.

The move reflects a sharp divide among stakeholders. Growth Energy and the Renewable Fuels Association have argued that the current label confuses consumers and discourages lawful use of E15 in newer vehicles. On the other side, the National Marine Manufacturers Association and the Petroleum Marketers Association of America contend that the label does not go far enough, and that the rise in E15 stations increases the risk of misfueling boats, lawn equipment, and older cars.

A Global Lens: The Right to Know at the Pump

The debate over fuel labeling is not unique to the United States. In India, a parallel controversy has erupted over the government's 20% ethanol blending mandate (E20). There, advocates have taken the fight to the Supreme Court, arguing that the right to know under Article 19(1)(a) of the Indian Constitution compels the government to disclose the ethanol content of fuel at the pump and to provide compatibility information for consumers.

While the U.S. EPA's proposal does not grapple with constitutional rights , it does touch on the same fundamental question: what does a consumer deserve to know about the fuel they are pouring into their tank? The Indian litigation frames this as a matter of informed consent , separate from the policy merits of blending itself. As the author of a recent analysis put it, "Deference to policy as it relates to 'why' ethanol blending should occur does not alone answer 'how' this occurs, especially when it comes to consumer rights."

Easing the Underground Storage Tank Burden

The second major prong of the EPA proposal addresses how E15 is stored. The agency is offering two new allowances for UST owners who cannot demonstrate compatibility of their existing equipment with higher-ethanol blends:

  • Secondary containment allowance: Owners who already have double-walled tanks and piping with interstitial monitoring can forgo full compatibility documentation, as long as the system can contain leaks.
  • Pre-certified equipment: Steel and fiberglass tanks manufactured after July 2005, and all fiberglass piping, are deemed compatible without further proof.

Longer term, EPA would require that any new UST installation or component replacement storing motor fuel for over-the-road vehicles must be compatible with ethanol blends up to 100%. This rule would take effect one year after the final regulation is published. "Since UST systems typically stay in the ground for decades—40% of active USTs are more than 30 years old—transitioning to compatible systems for emerging fuels can be very difficult," the agency explained.

Key Observations from the EPA

"Our action proposes to either modify the E15 label or remove the label requirement entirely."

"We continue to believe there are millions of such products in use that could potentially be misfueled on E15."

"We seek comment on the interaction between EPA and FTC’s labels, recognizing that we cannot modify FTC’s regulations in this action."

"This proposed requirement would become effective one year after the effective date of the final regulation."

"The additional cost of a fully ethanol compatible system would be relatively minimal as a percentage of total cost of installation."

What Comes Next

The rule is open for public comment for 90 days after publication in the Federal Register. EPA is also soliciting input on whether state and local government labeling requirements—such as additional warning stickers found in some jurisdictions—are preempted by federal law under the Clean Air Act.

For UST owners, the stakes are immediate: if they cannot demonstrate compatibility and cannot rely on secondary containment, they may need to replace components before storing E15. For retailers, the labeling decision will directly affect how they communicate with their customers.

The Indian experience serves as a reminder that the battle over labeling is never just about the label. It is about the consumer's place in a system increasingly dominated by policy mandates. Whether the EPA ultimately chooses to tweak the orange square or discard it altogether, the fundamental tension between energy goals and individual choice remains unresolved.