No, owners and operators of nonroad engines, vehicles, and equipment where the nonroad engine is certified under 40 CFR Part 1054 as a flexible-fuel engine are not prohibited from using gasoline-ethanol blended fuels containing greater than 10 volume percent ethanol in those products.
The regulations at 40 CFR 80.1504(a)(1) state that no person shall “[s]ell, introduce, cause or permit the sale or introduction of gasoline containing greater than 10.0 volume percent ethanol (i.e., greater than E10) into any model year 2000 or older light-duty gasoline motor vehicle, any heavy-duty gasoline motor vehicle or engine, any highway or off-highway motorcycle, or any gasoline-powered nonroad engines, vehicles or equipment.”
There is a separate exemption in the regulations for flex-fuel vehicles, which applies to motor vehicles. See 40 CFR 80.1504(a)(3), 80.1500, and 86.1803-01. EPA interprets the prohibition as limited to nonroad engines, vehicles, and equipment that are certified as gasoline-powered vehicles or engines. This prohibition does not include nonroad engines, vehicles, and equipment where the nonroad engine is certified under 40 CFR Part 1054 as a flexible-fuel engine, as they are designed to operate on blends that are not gasoline, e.g. E85, as well as gasoline.
EPA intends to modify the regulations in an upcoming rulemaking to clarify the scope of the prohibition.