Illustration: Brendan Lynch/Axios
Legislation that would allow year-round sales of gasoline with a higher blend of corn-based ethanol is gaining momentum — but still faces a significant Senate roadblock.
Why it matters: Farming, retailer and petroleum groups have joined in support of bills they say would boost gasoline supplies and lower fuel prices for consumers while giving farmers a bigger market.
- Some oil refineries have opposed it, pressing for broader changes to the EPA's Renewable Fuel Standard program. Also, environmental groups argue ethanol is a net negative for the climate because it requires so much land and processing
The big picture: Legislation that would require year-round sales has racked up bipartisan support: 14 co-sponsors, including three Democrats, in the Senate, and 35 co-sponsors, including 10 Democrats, in the House.
- "We have a broadening base of support," Rep. Adrian Smith, a Nebraska Republican who sponsored the House legislation, told Axios.
- The American Petroleum Institute, which previously opposed the idea, is now lobbying for the Senate bill. It "ensures uniformity across America's fuel supply, bringing much-needed consistency and long-term certainty to the marketplace," said API's Will Hupman in a statement.
- Senate sponsor Deb Fischer, also a Nebraska Republican, is "confident that a path forward exists in both the Senate and the House" given "bipartisan support of our legislation and our diverse group of stakeholders," she said in a statement.
Yes, but: Tom Carper, chair of Senate EPW, has refused to bring the bill up in committee.
- Trade groups repping fuel retailers and travel plazas called Carper's opposition the "primary roadblock" in a February letter to Senate EPW.
- A Senate EPW aide said divisions still linger on the issue, adding the likelihood of Congress advancing the bill "seems low."
- Despite bipartisan support, "the topic remains quite controversial, and no viable compromise among the interested parties has surfaced to resolve the issues at play here," the aide said.
Between the lines: Sales of gasoline blended with 15% ethanol, or E-15, are typically banned during the summer months under the Clean Air Act to limit smog. (Most U.S. gasoline is blended with 10% ethanol.)
- In April, the EPA granted emergency waivers for E-15 to be sold during the summer months — the third year in a row the agency has made such a move. E-15 was, on average, about $0.25 a gallon cheaper than E10, the EPA said in April.
- "Emergency waivers are not a long-term solution," Geoff Cooper, the Renewable Fuels Association's CEO, told reporters last week. "We need long-term certainty and clarity and predictability ... once and for all."
Our thought bubble: This perennial fight will remain a live issue in the months to come.
- Both President Biden and former President Trump have advocated for increased E-15 sales, and Democratic VP candidate Tim Walz would likely lean on his agricultural bona fides to elevate the issue in a Harris administration.
- Carper's retirement at the end of the year could open a path to moving the bill before next summer's driving season.
Editor's note: This article has been corrected to note that the legislation would allow (not mandate) year-round sales of gasoline with a higher blend of corn-based ethanol.
