When Congress returns from recess May 12, advocates hope E15 will get another chance in Washington. The measure was removed from the Farm Bill Wednesday following heated debates.
Legislation to allow year-round, nationwide E15 sales is now moving forward as a standalone bill. If the bill passes the House, it will likely be reintegrated into the broader Farm Bill.
The push for E15 has been a long-fought political struggle. However, Washington insiders believe the odds of passage are currently high. This is due in part to a renewed focus on biofuels and domestic energy security following recent global conflicts.
A Critical Vote on the Horizon
Industry leaders remain optimistic about the upcoming legislative schedule. Troy Bredenkamp, Senior Vice President of Government & Public Affairs for the Renewable Fuels Association (RFA), expects movement soon.
“I believe we will get our vote on the E15 measure on May 13. So things are still on track,” Bredenkamp says.
Despite the momentum, many farmers remain cautiously optimistic. The industry has seen similar measures fail at the finish line several times before.
“I mean, we get it right to the edge and then and then off it goes again. So, it’s been extremely frustrating,” Brent Johnson, president of the Iowa Farm Bureau says.
Reaching a Compromise
To advance the bill, an E15 task force consisting of refining and ethanol interests reached a compromise. The deal provides exemptions for the smallest refiners regarding blending obligations under the Renewable Fuels Standard (RFS).
Geoff Cooper, president and CEO of the RFA, explained the criteria for these exemptions: “If you can prove to EPA that you are at imminent risk of closure, and you can make that disclosure publicly, and you can show that the reason that you’re at risk of closure is the RFS itself, then you can have access to a capped amount of exempted volume.”
Additionally, a provision was added for other small refineries facing emergencies. This includes a 150 million RIN category they can tap into if they face an imminent threat of closure.
Economic and Environmental Impact
The industry is confident that these compromises will secure enough support for passage. Bredenkamp noted that the coalition of support is broad and bipartisan.
“We are probably three to one, almost four to one, support versus opposed to the E15 measure. We have over 60, almost 70, Democrats that are in support. So I think we can more than offset the amount of Freedom Caucus Republicans that may be in opposition to this,” Bredenkamp says.
While E15 remains voluntary, proponents say it will significantly boost corn demand. Bredenkamp estimates a massive shift in the market over the next several years.
“Within five years, you can move E10 to E15. That’s an additional 7 billion gallons of ethanol demand. That’s going to be an additional two-plus billion bushels of corn grind that is going to be needed,” he noted.
For farmers and consumers, the benefits are clear. Beyond market demand, the move is seen as a win for the environment and the American wallet.
“To, you know, help increase production, lower fuel costs for every consumer out there and really to start to take care of ourselves more domestically when it comes to our our fuels and it’s cleaner for the environment and it’s, I mean there’s just so many positives about it. It’s frustrating that the politics gets in the way,” Johnson says.
“E15, with the kind of production that we have the ability to do, it’s time to get it done,” adds Tim Recker, a farmer in Northeast Iowa.
