Thune Says Year-Round Higher Ethanol Blend Will Require Compromising with Small Oil Refiners

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August 17, 2026

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by Joshua Haiar (South Dakota Searchlight) The year-round sale of higher ethanol-blended gasoline, called E15, does not have enough votes in the U.S. Senate unless it comes with compromises for small oil refineries, said Majority Leader John Thune, R-South Dakota.

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Without a law authorizing year-round E15, summertime sales require a federal waiver.

Opponents point to research showing emissions from higher ethanol blends could worsen summer smog — although the biofuels industry disputes that — while encouraging the conversion of grasslands for corn farming. Some lawmakers from oil-producing and refining states also oppose the expansion.

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The U.S. House approved a bill in May authorizing year-round E15 sales, and year-round E15 language is in the Senate version of the farm bill under consideration by that chamber’s Ag Committee.

Walter Wendland, president of the South Dakota Ethanol Producers Association, asked Thune during Wednesday’s Midwest Agricultural Export Summit in Sioux Falls whether Congress could approve year-round E15 without making concessions to small oil refiners regarding the exemptions they receive from the Renewable Fuel Standard.

“Probably not,” Thune said.

Thune said E15 supporters need senators on board from states with small oil refiners. He listed Montana, Wyoming, Oklahoma, Arkansas and Tennessee lawmakers as those who might be inclined to support E15, but won’t without addressing small refineries’ concerns.

“At some point, we’ve got to get this done,” Thune said. “And I think at some point it becomes a decision of what can you get the votes to do.”

The dispute centers on the Renewable Fuel Standard, overseen by the Environmental Protection Agency. It requires oil refiners to blend a minimum amount of renewable fuels, such as ethanol, into their fuel supply, or pay for compliance credits.

Refineries processing 75,000 or fewer barrels per day can obtain a small refinery exemption if they can show that complying with the standard would cause them “disproportionate economic hardship.”

Whether the Renewable Fuel Standard is actually met depends partly on whether larger refiners make up for the exemptions granted to small refiners.

Current law allows no automatic exemptions. Small refiners must prove a hardship and can receive full or half exemptions.

The House bill would allow small refiners to receive automatic 75% exemptions, but the bill would require companies to aggregate their facilities rather than applying exemptions to individual plants. Seventeen of the 33 facilities that applied last year would be ineligible under that scenario. The House bill would not require exempted amounts to be reallocated to other refiners.

The Senate version would grant automatic full exemptions to small refiners without changing rules regarding aggregate versus individual facilities. The Senate version would require some reallocation of exempted amounts to other refiners. READ MORE

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Excerpt from Indiana Corn Growers Association/AgriNews: Before the end of this Congress in December, three extremely important matters directly impacting agriculture will be debated — the farm bill, year-round E15 and additional financial support for farmers.

These issues are critical for reestablishing a sound financial footing for an industry that has been hit hard by political and weather events outside of its control.

Progress has been made with the U.S. House of Representatives having passed its version of a new farm bill and year-round E-15 legislation earlier this year.

As those bills were being considered, farmer leaders from both the Indiana Corn Growers Association and the Indiana Soybean Alliance’s Membership & Policy Committee traveled to the nation’s capital to speak on your behalf about the need and urgency of passing these important bills.

We spoke not only to our Indiana representatives, but also joined with other farmer leaders from across the Midwest to reach out to representatives from districts that are not traditionally ag-focused districts. My group visited with representatives from California, Hawaii and New Mexico. READ MORE

Excerpt from North Dakota Monitor: Consumers would have more opportunity to save money on gasoline with higher levels of ethanol if Congress can remove a long-standing restriction, members of an ethanol industry roundtable said Monday (August 17, 2026).

The U.S. House has passed a bill to allow year-round sales of gasoline with 15% ethanol, known as E15. Current rules do not allow E15 sales during the summer, though the federal Environmental Protection Agency granted a waiver this year.

The roundtable, hosted by Rep. Julie Fedorchak, R-N.D., mostly consisted of members connected to agriculture, which would benefit from easier access to corn-based ethanol.

Dave Olson, bulk petroleum manager of West Fargo-based fuel retailer Petro Serve said E15 is about selling at a 15 cent discount to regular unleaded in the Fargo area.

“They’re looking for a bargain,” Olson said of consumers.

While his company is committed to offering E15, he said others are not interested in selling a fuel they can only offer for part of the year.

Dave Ripplinger, a bio energy economist and associate professor with North Dakota State University, said he understands that hesitation with thin profit margins in the retail world.

“They can’t afford to make mistakes,” Ripplinger said. Knowing E15 could be sold year-round, “changes the economics” for those businesses, he said.

In the 20 years since ethanol production has taken off, North Dakota has gone from less than a half-million acres of corn to 4.5 million acres of corn.

North Dakota’s five ethanol plants process 80% of the corn, with livestock feed one of the main byproducts of fuel production.

Ripplinger said the possibility of carbon capture at ethanol plants has the potential to boost North Dakota oil production, further advancing the importance of ethanol production.

“That provides this whole additional list of benefits that will support state economic activity,” Ripplinger said.

Corn-based sustainable aviation fuel, ethanol use in maritime shipping and tractors that could burn ethanol instead of diesel are other potential areas where the ethanol market could expand, roundtable members said.

The Gevo ethanol plant near Richardton is expanding with sustainable aviation fuel in mind.

The U.S. House was able to pass a year-round E15 bill in May, something Fedorchak called a “small miracle,” in part because some key House leaders voted against it.

The bill still needs to clear the Senate. Fedorchak said she expects the Senate to make some changes to the bill, meaning if it passes the Senate, the House would have to take it up again.

The restriction on higher ethanol use exists because of past studies showing possible detrimental effects of burning E15 in the summer months.

Fedorchak called that “old science” that has been refuted.

Panel members pointed out that some other countries allow much higher ethanol blends.

Brenda Elmer, executive director of the North Dakota Corn Growers Association, noted that Brazil, a key U.S. competitor in the corn and ethanol industries, as of Aug. 1 is mandating at least 32% ethanol in gasoline.

“We’re just asking for the option to sell E15,” Elmer said. READ MORE

Excerpt from 1011 NOW: Another topic brought up during the forum was year-round E15 sales. (Nebraska Senator Deb) Fischer said she is trying to correct misconceptions surrounding ethanol.

“Pete (Senator Pete Ricketts) and I have colleagues that make all sorts of comments that, Pete says they’re inaccurate. I say they’re just not true. It’s going to ruin your engine, please. It is not. Any car built after 2001, you can put ethanol in it. You can use biofuels,” Fischer said.

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