Corn Belt Lawmakers Push Year-Round E15 Ethanol Sales Amid High Gas Prices

With U.S. gasoline prices at their highest level since the start of the Iran war, a bipartisan group of Corn Belt lawmakers is pushing for a measure to authorize the sale of E15—gasoline blended with up to 15% ethanol—year-round. The proposal is part of ongoing negotiations over the Farm Bill, which the House of Representatives is expected to vote on this week.

E15 is typically banned during summer months due to its tendency to evaporate, contributing to air pollution and smog. However, the Trump administration waived these restrictions last month to allow E15 sales this summer in response to rising fuel costs.

Key Provisions of the Proposed Amendment

• Year-round E15 sales: Permits the sale of gasoline with up to 15% ethanol content throughout the year, including summer months.
• Limits on RFS exemptions: Restricts blending exemptions for small refineries under the Renewable Fuel Standard (RFS), a federal law requiring refiners and fuel importers to incorporate a minimum percentage of renewable fuels—primarily ethanol—into transportation fuel.

Compliance with the RFS is projected to cost refineries approximately $70 million in both 2026 and 2027, according to energy consulting firm Turner, Mason Company.

"At a time when consumers are acutely sensitive to energy prices, this amendment represents a pragmatic solution that balances energy affordability, rural economic strength, and regulatory certainty."

The proposed reforms also aim to enhance transparency and predictability for parties subject to the RFS, though not all stakeholders support the changes.

Opposition from Major Oil Corporations

Last week, the National Corn Growers Association criticized a group of oil corporations for allegedly attempting to block legislation aimed at lowering fuel prices. In a press release, association president Jed Bower singled out several companies, including Delek U.S. Inc., Cenovus Energy, CVR Energy, HF Sinclair, Parr Pacific Holdings, and Suncor Energy Inc.

"There is a tiny minority of major energy corporations—like Delek U.S. Inc., Cenovus Energy, CVR Energy, HF Sinclair, Parr Pacific Holdings and Suncor Energy Inc.—that are masquerading as small refineries to get Renewable Fuel Standard exemptions they don't need." Their greedy actions are holding up legislation that would help farmers who are struggling during tough economic times."

Bower argued that these corporations are exploiting loopholes to avoid compliance costs, thereby undermining efforts to reduce fuel prices. The Environmental Protection Agency (EPA) does not publicly disclose which companies receive RFS waivers, making it difficult to quantify the total savings for these firms. However, industry experts like Ben Lieberman of the Competitive Enterprise Institute suggest that the financial impact is likely significant for small refineries.

None of the targeted companies responded to requests for comment.

Broader Industry Support and Subsidies

Even if the amendment fails to pass, the ethanol industry and corn farmers are unlikely to face significant setbacks, as they continue to receive substantial federal support. In addition to the RFS mandate requiring ethanol use, the industry has benefited from federal subsidies for over a decade. From 2009 to 2020, ethanol producers received an estimated $42 billion in federal subsidies, according to data from the Congressional Budget Office.