A U.S. government funding bill has included a plan that would allow year-round sales of gasoline with a higher ethanol blend, a major victory for the corn and ethanol lobbies. The provision, which was expected earlier, would mark a significant boost for the ethanol industry and provide credits to some refiners that prove compliance with the U.S. Renewable Fuel Standard (RFS).
The plan would also provide credits to small refiners who had petitioned the U.S. Environmental Protection Agency for an exemption from the RFS during compliance years 2016-2018 but were denied or had outstanding petitions as of December 1, 2022. The language in the provision follows a bill sponsored by U.S. Senator Deb Fischer from Nebraska.
The biofuels industry has welcomed the provision, with Geoff Cooper, president of the Renewable Fuels Association, stating that they are “very pleased” to see the fix allowing year-round E15. The plan would likely nullify a controversial decision by the U.S. government to approve a request from Midwestern governors to allow year-round E15 sales only in their states, starting in 2025.
Sales of E15 are currently blocked from June to September due to concerns that adding ethanol to gasoline can increase smog pollution in hot weather. However, research has shown little difference between E15 and the more widely available E10 blends. The provision also includes language for the EPA and the Commodity Futures Trading Commission to review fuel blending credits and submit a report to reduce manipulation of the renewable fuel market.
