US Groups Urge Congress for Year-Round E15 Gas Sales

Coalition Seeks E15 Amendment in Farm Bill

A coalition representing ethanol producers, farmers, and fuel retailers is urging the U.S. Congress to permit the year-round sale of gasoline containing 15% ethanol, known as E15. The push comes as a response to rising fuel prices that have exceeded $4 per gallon. The proposal is an amendment to the omnibus Farm Bill submitted by over 20 lawmakers, led by Representative Michelle Fischbach.

Current Market and Price Situation

Gasoline prices have risen steadily due to a global energy supply crunch, with the national average reaching $4.06 per gallon. To mitigate costs, the Environmental Protection Agency has already used emergency waivers to allow E15 sales since late March. Supporters argue that E15 is typically cheaper than conventional gasoline, potentially saving consumers up to 30 cents per gallon.

Economic and Industry Impact

Advocates, including the American Petroleum Institute and the National Corn Growers Association, state that year-round E15 access empowers consumers and helps retailers meet market demand during periods of high costs. However, refining industry groups like the American Fuel & Petrochemical Manufacturers oppose the move, citing concerns over additional compliance costs.

Legislative Outlook

The House Committee on Rules is scheduled to consider the legislation next week as part of the Farm Bill. The move has received prior support from President Donald Trump, who indicated he would sign such legislation. This action is part of a broader White House strategy to limit the economic impact of high oil prices, which also includes releasing emergency crude stockpiles.

FAQ

Q: What is E15 gasoline?
A: E15 is a gasoline blend containing 15% ethanol. Its sale is typically restricted during summer months over concerns that it contributes to smog.

Q: Why are lawmakers pushing for year-round E15 sales now?
A: The effort aims to lower retail gasoline prices for consumers, which have surged past $4 per gallon due to global energy supply constraints.

Source: Reuters