Senators Propose Extending E15 Gasoline Sales With Oil Industry Backing

Senator Deb Fischer of Nebraska told Reuters that senators from Nebraska and Minnesota submitted legislation on Tuesday to raise nationwide sales of E15, a gasoline with a higher ethanol content, after obtaining initial backing from an oil industry trade group.

The idea, sponsored by Fischer and Minnesota Senator Amy Klobuchar and backed by the American Petroleum Institute (API), would be a significant triumph for the ethanol industry and maize farmers, who have frequently tried to increase E15 sales but have found roadblocks.

Uncertain as to whether the bill has the required votes to pass both the House and the Senate, the oil industry's support has removed a major political obstacle.

Environmental Protection Agency (EPA) anti-smog regulations currently ban summertime sales of E15, despite research indicating that the higher percentage blend may not contribute to smog as much as the 10% blend known as E10, which is available year-round.

This month, Reuters reported that the API has begun working with biofuel business groups on legislation, after governors from major corn-producing Midwestern states requested the EPA allow for more E15 sales in their respective states earlier this year. In reaction to the governors' suggestion regarding fuel restrictions that differed from state to state, the oil industry raised concerns.

Fischer told Reuters, "Our backing is robust." Considering the impact it will have on the central United States, the Midwest, and a chunk of the south, I feel this to be of great importance.

Fischer stated that if approved, his and Klobuchar's proposal would nullify the governors' request and prohibit a piecemeal extension of E15.

"By allowing the year-round sale of E15 across the country and preserving access to lower ethanol gasoline blends, this bipartisan legislation strengthens the fuel supply chain and ensures American consumers have access to the fuels they rely on daily," said Will Hupman, vice president of downstream policy for the American Petroleum Institute.

The Act also has the support of Senator Kevin Cramer of North Dakota, who is a cosponsor. North Dakota is one of the leading oil-producing states, according to Fischer, so Cramer's endorsement is crucial.

This month, organizations such as the American Petroleum Institute (API), the Renewable Fuels Association (RFA), and the National Farmers Union asked legislative leaders to expand E15 sales nationwide.

RFA President Geoff Cooper stated, following Tuesday's legislative announcement, "We appreciate Sens. Fischer, Klobuchar, and other renewable fuel supporters in the Senate for introducing this legislation, which provides the market with much-needed uniformity and stability."