Year-Round E15 Hearing Held, But Legislation Faces Hurdles

Senate panel chairman opposes E15 measure

Senate Environment and Public Works (EPW) Chairman John Barrasso (R-Wyo.) held a hearing Wednesday on legislation that would ease restrictions on the sale of gasoline blended with at least 15% ethanol, but it is a measure he opposes.

The bill (S 517), sponsored by Sen. Deb Fischer (R-Neb.), would order the EPA to waive its rule prohibiting the sale of gasoline containing 15% corn-based ethanol (E15), during the summer months. The prohibition was based on findings that tied the mixture to smog-causing emissions during warm weather. Lawmakers and biofuel specialists sparred over whether expanded sales of fuel containing a higher percentage of ethanol could increase concentrations of ground-level ozone, a pollutant that can trigger a variety of health problems including exacerbated asthma attacks. Sales of E15 under the Renewable Fuel Standard (RFS) are restricted between June 1 and Sept. 15 to reduce ozone emissions and smog during the peak summer driving season. E15 is only sold in 29 states.

EPA approved the use of E15 gasoline in 2011 for light duty trucks and cars of model years 2001 and newer, even as the auto industry and other groups objected that the fuel would be corrosive for some vehicles.

“In Wyoming, folks want fuel with less, not more, ethanol,” Barrasso said at the hearing. “They worry [about] what fuel with more ethanol will do to their car engines, and who will be stuck paying the bill.”

EPW ranking member Thomas Carper (D-Del.) took no position on the legislation, saying instead he wanted to gain a better understanding of its impact on corn production and the environment. But he added that he would oppose the E15 bill without an amendment addressing “transparency in the RIN market,” referring to credits refiners must purchase to comply with the Renewable Fuels Standard.

The bill also did not find support with another of the panel’s top Republican, Sen. James Inhofe (R-Okla.). Without the support of Barrasso and Inhofe, sources say it is unlikely the measure will get any traction beyond the hearing.

Meanwhile, Carper said he does not sense an “eagerness to have a markup.” So why the hearing? Barrasso agreed to the hearing in exchange for corn state lawmakers’ support for a Congressional Review Act resolution (HJRes 36) to nullify Obama administration methane regulations. Those lawmakers used the ethanol issue as a bargaining chip at a time when support for the resolution to kill the methane rule looked shaky.

Panel vote ahead. After the resolution was defeated in May, Barrasso kept his word on the E15 measure. Barrasso said after the hearing he will hold a vote on the bill at Fischer’s request, but no date has been set.

Absent a legislative solution, EPA could still announce year-round E15 administratively, although no final decision on that has been made.