By Jamie Martin
The US government’s new funding bill includes a crucial provision allowing year-round sales of E15 gasoline, a higher ethanol blend. This decision marks a significant victory for the ethanol industry and corn producers who have long advocated for expanding ethanol demand.
Previously, E15 sales were restricted during summer months due to concerns about smog formation in hot weather. However, recent research shows little difference in emissions between E15 and the commonly used E10 blend. The change ensures a consistent market for ethanol producers throughout the year.
The bill also provides compliance credits to small refiners who applied for exemptions from the Renewable Fuel Standard (RFS) for compliance years 2016-2018 but were denied or had pending petitions. The RFS mandates blending biofuels into the nation’s fuel supply or purchasing credits from compliant refiners.
Senator Deb Fischer of Nebraska, a major corn-producing state, played a pivotal role in advancing the legislation. Fischer stated, “My bill puts an end to years of patchwork regulations and uncertainty– year-round, nationwide E15 will now be a reality.”
The Renewable Fuels Association expressed its approval. Geoff Cooper, the group’s president, said, “We are very pleased to see that the long-awaited fix allowing year-round E15 is included in this package.”
Additionally, the bill mandates the Environmental Protection Agency and the Commodity Futures Trading Commission to review renewable fuel credits and report measures to prevent market manipulation.
This provision nullifies a previous decision allowing E15 sales only in Midwestern states by 2025, a move criticized for potentially disrupting fuel prices and supply.
With this bill, the US strengthens its commitment to renewable fuels, supporting farmers and the biofuel industry while addressing market stability concerns.
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Categories: National