Two counties get reprieve from summer gas price hike

INDIANAPOLIS – Hoosiers in Clark and Floyd counties won’t be penalized at the pump or face a potential shortage of fuel this summer thanks to the temporary suspension of an outdated and unnecessary state environmental requirement.

In a meeting on June 15, Indiana’s Environmental Rules Board (ERB) voted unanimously to suspend low Reid vapor pressure (LRVP) fuel requirements in those counties through an expedited, interim rulemaking.

These actions follow executive orders issued by Governor Mike Braun on April 13 and June 12, directing the Indiana Department of Environmental Management (IDEM) to "take all necessary actions to permanently rescind state requirements for low Reid vapor pressure fuel in Clark and Floyd counties."   

LRVP gasoline typically adds between 10 and 20 cents per gallon for consumers. By eliminating this requirement, Indiana could save between $2.5 and $5.1 million during a single summer fuel season, according to analysis from IDEM’s Office of Air Quality. Aligning fuel standards with the rest of the region also helps stabilize supply and reduce the risk of localized price spikes.   

The LRVP requirement in Clark and Floyd counties was introduced 31 years ago through 326 IAC 13-3 to satisfy federal Clean Air Act requirements for the Louisville Metropolitan Area. The U.S. EPA removed LRVP requirements for Kentucky earlier this year.   

IDEM officials assure residents that eliminating the LRVP fuel requirement will not adversely impact local air quality. They note that modern vehicles and fuels already achieve significant emission reductions, making the previous LRVP benefit too small to measure.   

The temporary waiver is in place for 425 days. IDEM and the ERB will be considering permanent changes to this requirement ahead of summer 2027.   

The move away from LRVP also supports local businesses by preventing supply‑chain constraints; only one company currently supplies the boutique fuel.   

With this change, gas stations statewide can continue selling E15 (‘Unleaded 88’) through their normal distribution networks. Aligning fuel requirements with surrounding areas may also encourage customers to make more purchases locally rather than seeking lower fuel prices across county lines.   

The action matches recent federal fuel waivers granted by the U.S. Environmental Protection Agency and removes barriers to the introduction of certain mid-level biofuel blends.