US E15 Approval Nears as Refiners Push Back

Insight Focus

E15 Legislation Gains Ground in Congress

Momentum continues to build in Washington, DC, around year-round E15, with ethanol advocates saying the industry may be closer than ever to a long-sought legislative fix. Renewable Fuels Association (RFA) Director of Government Affairs Jared Mullendore said that while past efforts have repeatedly stalled, there is growing consensus among lawmakers.

“I think we’re working right now with a product that pleases many of them. Lawmakers are ready to move forward,” Mullendore said.

Expanding ethanol blends beyond the current 10% level could significantly boost demand for corn. “If you can take an effective blend rate that’s in the 10% range to the high 11s, that would be a billion and a half gallons of ethanol, which would be half a billion bushels of corn,” Mullendore said. “Ask any farmer if an extra half a billion bushels of demand would be a good thing to have.”

Source: USDA

While lawmakers appear to be falling in line, a small coalition of independent refiners is rejecting the latest E15 proposals. The leader of the National Corn Growers Association (NCGA) has called out several major companies trying to derail legislation that would allow for the year-round sale of E15.

The proposed legislation, which enjoys the support of most of the petroleum industry, would also reform parts of the small refinery exemption program under the Renewable Fuel Standard. “There is a tiny minority of major energy corporations that are masquerading as small refineries to get Renewable Fuel Standard exemptions they don’t need,” said Ohio farmer and NCGA President Jed Bower. “Their greedy actions are holding up legislation that would help farmers who are struggling during tough economic times.”

Bipartisan Support Builds to Add E15 to Farm Bill

Agri-Pulse News reports that the world’s biggest maker of tractors and other farm machinery is calling on congressional leaders to add E15 to a farm bill that is expected to get a vote within days. Deere & Co. Chairman and CEO John May has asked US House Speaker Mike Johnson and Democratic leader Hakeem Jeffries to back the latest effort to allow year-round, voluntary US sales of higher ethanol blends with motor gasoline.

“The farm bill and E15 are practical steps Congress can take now to support agriculture, expand lower-cost fuel access, and strengthen American energy independence,” May wrote in a recent letter. The agriculture equipment giant joins corn and biofuel groups in pushing to attach a bipartisan E15 measure to the farm bill.

Congresswoman Ashley Hinson, a member of the House Rural Domestic Energy Council, said getting E15 language into the so-called “skinny” farm bill was a critical need for farmers. “It’s an incredibly anxious time for our farmers. We know the ag economy is troubled and being squeezed by cost pressures from all sides.”

The Iowa Republican said producers need relief from market uncertainty. “Market uncertainty is where E15 comes in. It can be the answer to make sure our producers have a guaranteed source of income and consumers have a choice at the same time.” Hinson said she’s optimistic the council’s E15 amendment can be included in a final farm bill package. “I think this is a very bipartisan solution. Republicans and Democrats are on board with this E15 proposal.”

Brazil Pushes for Higher Ethanol Blend

Brazil’s ethanol makers are ready to raise output if the government increases the legal blend of ethanol with gasoline from 30% to 32% this year, industry figures said, adding that production is heading toward a record.

Brazil’s government wants to raise the ethanol blend to 32% in the first half of the year, Minister of Mines and Energy Alexandre Silveira said recently, amid higher costs for fossil fuels as oil prices surge following the conflict in Iran.

Source: MNE