US Senators Seek to Expand Sales of Ethanol-Gas Blend with Support from Big Oil

by Stephanie Kelly (Reuters) U.S. senators reintroduced a bipartisan bill on Tuesday that would allow nationwide sales of gasoline with a higher blend of ethanol year-round, as a second heavy-weight oil trade group appeared ready to back the idea.

Republican Senator Deb Fischer from Nebraska and Democratic Senator Amy Klobuchar from Minnesota - both major corn-producing states - argue that the expanded sales of E15, or fuel containing 15% ethanol, would decrease gasoline prices and reduce U.S. dependence on foreign oil. Year-round sales of E15 have been long sought by the biofuel industry and corn farmers, who would benefit from the increased market.

The American Petroleum Institute (API), one of the largest U.S. oil trade groups, has supported the bill since it was introduced last autumn. It began cooperating with the Renewable Fuels Association, a biofuels trade group, on expanded nationwide E15 sales after governors from major corn-producing Midwestern states requested the U.S. Environmental Protection Agency (EPA) lift restrictions on E15 in their states, Reuters previously reported. The governors' effort raised oil industry concerns that the proposal would create a patchwork of different fuel regulations and logistical challenges around distribution.

On Tuesday, another top U.S. oil group, the American Fuel and Petrochemical Manufacturers (AFPM), signaled it could support a national standard. READ MORE

Excerpt from Renewable Fuels Association: The Renewable Fuels Association today applauded members of the U.S. House and Senate for reintroducing legislation to provide permanent, nationwide availability of the lower-cost, lower-carbon E15 ethanol blend. RFA thanks Sens. Deb Fischer (R-NE) and Amy Klobuchar (D-MN) for leading introduction of the bill in the Senate and Reps. Angie Craig (D-MN), Adrian Smith (R-NE) and Dusty Johnson (R-SD) for their leadership in the House. The bill has 15 additional co-sponsors each in the House and Senate.

“This commonsense legislation is supported by a broad and diverse coalition, ranging from farmers to filling stations and from ethanol producers to petroleum companies,” said RFA President and CEO Geoff Cooper. “We all agree that American drivers need access to lower-cost, lower-carbon E15 at the pump every day of the year and across this country. We thank Sens. Fischer and Klobuchar, Reps. Craig, Smith and Johnson, and all their fellow renewable fuel supporters for continuing the fight and reintroducing these important bills. Enough is enough—it’s time to finally remove the burdensome and nonsensical barrier that has blocked consumer access to cheaper, cleaner E15 for far too long. With the summer driving season right around the corner, we call on Congress to move quickly and adopt this legislation as soon as possible.”

As a result of emergency waivers issued by the Biden administration in April 2022, the availability of E15 saved American drivers nearly $60 million at the pump last summer. Consumers choosing E15 saved an average of $0.23 per gallon last summer, equating to a savings of three to five dollars with every fill-up.

Originally introduced late in the last Congressional session, the Consumer and Fuel Retailer Choice Act would harmonize fuel volatility regulations for ethanol-blended fuels across the country, allowing for the year-round sale of E15 in conventional gasoline markets. It also would supersede an effort by Midwest state governors to make regulatory changes that would assure the availability of E15 sales year-round in their states, an effort that was approved by the U.S. Environmental Protection Agency but delayed until summer 2024.

Additional Senate bill co-sponsors, listed alphabetically, include Sens. Tammy Baldwin (D-WI), Sherrod Brown (D-OH), Kevin Cramer (R-ND), Tammy Duckworth (D-IL), Dick Durbin (D-IL), Joni Ernst (R-IA), Chuck Grassley (R-IA), John Hoeven (R-ND), Roger Marshall (R-KS), Jerry Moran (R-KS), Pete Ricketts (R-NE), Mike Rounds (R-SD), Tina Smith (D-MN), Debbie Stabenow (D-MI) and John Thune (R-SD).

Additional co-sponsors to the House bill, listed alphabetically, are Reps. Don Bacon (R-NE), Mike Bost (R-IL), Andre Carson (D-IN), Randy Feenstra (R-IA), Michelle Fischbach (R-MN), Mike Flood (R-NE), Sam Graves (R-MO), Ashley Hinson (R-IA), Marcy Kaptur (D-OH), Dan Kildee (D-MI), Darin LaHood (R-IL), Jake LaTurner (R-KS), Blaine Luetkemeyer (R-MO), Mariannette Miller-Meeks (R-IA) and Zach Nunn (R-IA).

Last November, RFA and the American Petroleum Institute led a broad coalition of energy and agriculture organizations that called on Congress to quickly adopt legislation to permanently resolve inconsistent fuel volatility regulations. RFA estimates that nearly 97 percent of registered vehicles on the road today are legally approved by the U.S. Environmental Protection Agency to use E15, and the vast majority also carry the manufacturer’s endorsement to use E15. Recent analyses by RFA and the U.S. Energy Information Administration confirm that expanded use of E15 provided meaningful consumer savings at the pump last summer, as war in Ukraine pushed crude oil and gasoline prices to historic highs. A recent CSP survey found that one out of every five fuel retailers plan to add the E15 blend at their locations in the coming year; more than 2,800 fuel stations currently carry the blend. READ MORE