Insight Focus
US House passes national E15 legislation. The bill now advances to the Senate, proposing revised small-refinery exemptions and reallocating waived blending volumes. Corn groups highlight gains from stronger demand and prices, while soybean stakeholders remain divided over impacts.
The nationwide, year-round availability of E15 in the US is nearing reality, as the US House of Representatives on May 14 passed historic legislation authorising the sale of the lower-cost fuel blend by a vote of 218 to 213.
According to the Renewable Fuels Association (RFA), the passage of this bill effectively removes three decades of regulatory red tape that had previously stifled consumer choice and marketplace competition. The successful House vote was driven by a bipartisan coalition of lawmakers and others who stood strong to deliver the bill.
The bill now moves to the US Senate, where many members have previously expressed support, but prospects for passage are uncertain. If the bill gets past the Senate, President Trump will have to sign it into law.
Policymakers Revise E15 Exemptions Framework
As widely reported in recent months, President Trump, Vice President J.D. Vance, and Department of Agriculture Secretary Brooke Rollins have all actively pressured Congress to pass E15 this year. To ensure its success in the upper chamber, President Trump has explicitly tapped Senate Majority Leader John Thune to advance the legislation. Lawmakers and advocates are demanding urgent action from the Senate.
The bill, H.R. 1346, represents a compromise from the farm bill version, most notably when it comes to small-refinery exemptions (SREs). Starting on January 1, 2028, refineries seeking exemptions would receive an automatic 75% exemption from their Renewable Fuel Standard obligations. The US EPA would lose its existing authority to grant hardship-based SREs after 2028. In addition, 75% of those exempted volumes would be reallocated to other refiners.
Note: All volumes in billion RINs. One RIN is equivalent to one ethanol-equivalent gallon of renewable fuel.
Source: EPA
In response, Ohio farmer and National Corn Growers Association President Jed Bower released the following statement: “We are thrilled to see that E15 legislation passed the House today and are deeply appreciative of the legislation’s sponsors, co-sponsors, and all its congressional supporters.
“Passage of this bill is essential to the success of corn farmers and rural communities, particularly as our growers face their fourth year of net losses and struggle with high input costs. It would also help drivers across the country, who could save 10 to 30 cents per gallon on gas as fuel prices continue to rise.
“We encourage members of the Senate to quickly take up this bill and send it to the president’s desk for signature.”
Industry Splits Over E15 Impacts
Kim Chipman of Agri-Pulse writes that the corn industry’s quest to get more biofuel into US gasoline tanks took a stumble, as estimates of the cost of the proposed ethanol legislation to soybean farmers opened up a major rift in the agriculture sector. The discord erupted just hours before the House was expected to vote on legislation to allow voluntary, year-round sales of E15.
The main hurdle to passing such legislation this year had been disagreement between large and small oil refiners over a provision to revamp the process of granting small refinery exemptions (SREs) from biofuel-blending rules under the Renewable Fuel Standard (RFS). But on May 13, major corn and soybean trade groups came into conflict over two separate estimates of how the bill would impact biomass-based diesel and the soybeans frequently used to make the biofuel. The findings prompted the American Soybean Association to privately advise its membership that it cannot support the E15 bill.
On May 14, the National Corn Growers Association (NCGA) released an analysis demonstrating a net positive benefit of year-round E15 for corn and soybean farmers.
“For corn farmers, most of whom also grow soybeans, the overall impact is positive,” the study explained. “On average, a representative farm with equal corn and soybean acres realises a net benefit exceeding USD 5/acre over the projection period.”
Using a model developed by World Agricultural Economic and Environmental Services for NCGA, the study found that expanded E15 use—when accounting for updated Renewable Fuel Standard volumes and industry market assumptions for E15 adoption—has several key benefits.
“At a time when farmers are facing tight margins, allowing year-round, nationwide E15 stands out as a market-driven solution that strengthens rural economies and delivers savings to taxpayers,” the study noted.
