The US ethanol industry is poised for a significant victory as Congress considers legislation to permit year-round sales of E15, a gasoline blend containing 15% ethanol. This provision, included in a proposed short-term government spending bill, aims to address regulatory hurdles that currently restrict E15 sales during summer months in many parts of the country.
The long-sought goal of nationwide E15 availability is considered vital for the future of the ethanol industry. For over a decade, ethanol producers and corn growers have advocated for expanded E15 access, facing strong opposition from oil refining states. However, the growing dominance of electric vehicles has fostered an unlikely alliance between the agricultural and oil sectors, united by a shared concern about the future of their respective industries.
Current environmental regulations limit E15 sales during the summer in much of the US due to concerns about increased evaporation and air pollution. Without a national law, refiners would face the logistical and financial challenges of managing a dual fuel system following the EPA’s approval of year-round E15 sales in eight Midwestern states earlier this year.
Corn field, a source of ethanol.
Senator Deb Fischer (R-NE), a key proponent of the legislation, emphasizes its potential to stabilize regulations, reduce gas prices, empower consumers with more fuel choices, and provide crucial support to American producers grappling with declining prices. The bill, if enacted, would take immediate effect.
While E15 sales have been increasing, industry advocates believe that year-round approval is essential for sustained growth. Senator Chuck Grassley (R-IA), representing the nation’s leading corn-producing state, highlights the substantial economic benefits that Iowa could reap from the shift to year-round E15 sales. Increased demand for American corn for biofuel production could provide much-needed relief to farmers facing lower crop prices.
Despite optimism surrounding the measure, last-minute alterations to the continuing resolution could still jeopardize its passage. However, stakeholders express confidence in the bill’s prospects. Geoff Cooper, CEO of the Renewable Fuels Association, underscores the significance of removing this regulatory obstacle for the industry.
The American Petroleum Institute, the influential oil industry lobbying group, has joined forces with agricultural organizations in support of Senator Fischer’s E15 bill. This collaborative effort reflects a shared interest in maintaining access to both lower and higher ethanol blends in the fuel market.
Historically, the US government promoted ethanol use following the oil crisis of the late 1970s, and later, in response to energy security concerns after the 9/11 attacks. This led to the establishment of a mandate requiring the blending of ethanol and other biofuels into the national fuel supply.
This mandate sparked a debate, with oil producers raising concerns about increased refining costs and potentially higher prices at the pump. Environmental concerns regarding pollution and summertime evaporation have also fueled the controversy surrounding E15.
The biofuels industry contends that the summertime ban relies on outdated data and that higher ethanol blends are necessary to mitigate climate change by reducing greenhouse gas emissions. Emily Skor, CEO of Growth Energy, emphasizes the potential benefits of E15 in terms of emissions reduction, cost savings for drivers, and enhanced American energy independence.
In conclusion, the proposed legislation to enable year-round E15 sales represents a pivotal moment for the ethanol industry. While potential challenges remain, the bipartisan support and the alignment of interests between the agricultural and oil sectors suggest a strong likelihood of its passage. The outcome will significantly impact the future of biofuels in the US and the broader energy landscape.
