Commodities
US House Approves Year-Round 15% Biofuel Blend in Gasoline
The US House of Representatives on Wednesday passed a bill to allow nationwide year-round sales of E15, a gasoline grade containing 15% ethanol, following a one-hour debate, with a Senate vote on it yet to follow.Lawmakers approved the Nationwide Consumer and Fuel Retailer Choice Act, also known by its bill identification number HR 1346,by a majority of 218 to 203, to allow fuel retailers to sell E15 permanently."The bill amends the Clean Air Act to address the limitations on reid vapor pressure (a measure of gasoline's volatility) that are placed on gasoline during the summer ozone season," according to the bill definition. That effectively aligns E15 RVP regulations with E10, which is currently the standard US gasoline blend.The bill, once passed by the Senate and signed by President Donald Trump, will also remove the need for temporary waivers that allow for richer ethanol blends, during summer months.The US Environmental Protection Agency last issued an emergency waiver in March to ensure availability of domestic fuel during the so-called driving season when road travel peaks.Congressman Adrian Smith of Nebraska, the sponsor of the bill, said in a press conference on Tuesday that the move could lower fuel prices and bolster energy security, while boosting demand for corn, Nebraska Public Media reported.Supporters also agreed that E15 can help stabilize gasoline prices, as it can be offered at discounts of 10 cents to 30 cents per gallon versus regular gasoline, according to the local news outlet.The Renewable Fuels Association said E15 can generate savings of 20 cents to 40 cents per gallon, citing data from E15prices.com, with E15's discount to E10 averaging around 10% in recent days."As Americans continue to face pressure from rising energy costs, this bill delivers greater certainty for consumers while expanding choices at the pump," American Petroleum Institute president Mike Sommers said.The bill could also provide market stability to farmers by increasing corn demand by up to 2.4 billion bushels per year, according to the American Farm Bureau Federation.Some critics, however, argued that costs for refiners may rise due to higher compliance requirements from biofuel mandates, Reuters said.The bill could also increase US debt, with the Congressional Budget Office estimating that the net deficit could increase by about $2.3 billion between 2026 and 2036, if the legislation took effect in August 2026, Reuters and agriculture data provider DTN reported.A Senate vote on the legislation has yet to be scheduled.