US bill boosts ethanol industry

Dec 20, 2024
By Farms.com

Year-round E15 sales approved for nationwide use

The US government’s recent funding bill includes a historic move to permit year-round sales of E15 gasoline. This higher ethanol blend is expected to significantly benefit the biofuels and corn industries by increasing demand and providing stability to farmers and ethanol producers.

Previously, E15 sales were prohibited in summer due to concerns about increased smog pollution. However, studies reveal negligible differences between E15 and the commonly used E10 blend, paving the way for year-round availability.

The bill also addresses the Renewable Fuel Standard (RFS) compliance. It offers credits to small refiners who petitioned the Environmental Protection Agency (EPA) for exemptions from 2016 to 2018 but were either denied or had unresolved cases. The RFS requires refiners to blend biofuels or buy credits, supporting the renewable energy market.

Senator Deb Fischer of Nebraska, a leading corn producer, championed the legislation. Fischer said, “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 welcomed the move. President Geoff Cooper commented, “We are very pleased to see that the long-awaited fix allowing year-round E15 is included in this package.”

The bill also requires the EPA and the Commodity Futures Trading Commission to review Renewable Identification Numbers (RINs) to prevent market manipulation, ensuring transparency in renewable fuel markets.

By removing the summer sales ban, the bill nullifies a controversial 2025 regulation limiting E15 to Midwestern states. Critics had argued such restrictions could disrupt fuel prices and supplies.

This decision reinforces the US commitment to renewable energy, benefiting farmers, refiners, and the environment while promoting year-round ethanol usage.

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