The new “E15 Rural Domestic Energy Council,” formed by House Republicans in January, is circulating a discussion draft that would allow year-round E15 gasoline. The proposed deal, which has been at an impasse over blending requirements for small refiners, raises the number of exemptions allowable on blending mandates, in addition to allowing year-round E15.
The Rural Domestic Energy Council was established in January after lawmakers declined to include year-round E15 in the fiscal year 2026 spending bill. The Council is comprised of House lawmakers representing ag industry interests, along with small and mid-sized refinery interests.
The modified plan would limit exemptions on obligations for small refineries to 550 million RINs per year, +100 higher than the initial proposal. Biofuels backers asked that the 450 million Renewable Identification Number (RINs) cap for Small Refinery Exemptions (SREs) stay the same, and that lawmakers ban reallocation of granted exemptions.
The Council was supposed to submit a proposal by February 15, and bring a bill to the House floor by February 25. The first deadline was missed amid disagreements, which resulted in the most recent draft being circulated. Council members claim the bill is currently being written and could be ready for a full House vote by early March. The rule authorizing the Council gave until the end of February for floor action on E15.
As most know, E15 (15% ethanol blend gasoline) availability is reliant on emergency EPA waivers during the summer driving season (June 1–September 15). President Trump signed an executive order in January declaring a “national energy emergency” that directed the EPA to allow for year-round E15 sales, with the agency urged to issue waivers. However, agricultural groups have been pushing for permanent legislative action to replace the need to fight for temporary waivers every year.
According to the National Corn Growers Association (NCGA) and the Renewable Fuels Association (RFA), year-round, nationwide E15 would support over 128,000 new jobs, add $25.8 billion to the country’s GDP, and save American consumers $20.6 billion in fuel costs. The policy would increase corn demand by over 2 billion bushels annually, providing a significant boost to the rural economy, while consumers could save as much as 30 cents per gallon at the pump.
Ag groups claim a deal is being held up by mid-sized oil refiners that continue to oppose the expansion of E15. Despite not reassigning exempted volumes to mid-sized refineries, those refiners argued that expanding the U.S. market for corn-ethanol would cause them to shut down.
“We got a few medium-sized refineries, some of them making a billion dollars a year. They want to be included,” said Iowa Senator Chuck Grassley. “I never heard that for seven years, and that’s what’s holding up E15.”
Currently, there are no plans to attach year-round E15 legislation to the “skinny farm bill” being negotiated in Congress. House Ag Committee Chair Glenn Thompson says it is, “Not our jurisdiction, that’s Energy and Commerce.” And getting it through the House is just the tip of the iceberg. Lawmakers in the Senate must also confront oil industry allies that oppose expanding corn ethanol sales.
US farmers are also waiting for EPA to finalize blending requirements for 2026 and 2027. These were supposed to be finalized by the end of November 2025. The Trump administration is now aiming to have this done by early March. The EPA in June proposed total biofuel blending volumes at 24.02 billion gallons in 2026 and 24.46 billion gallons in 2027, up from 22.33 billion gallons in 2025.
Ethanol accounted for 11.06% of the nation’s gasoline in October, marking the first time in history that the monthly ethanol “blend rate” has topped 11%, according to data from the U.S. Energy Information Administration released in January. The RFA says the said the record-high blend rate should put to rest—once and for all—the myth that a so-called “blend wall” prevents ethanol from making up more than 10 percent of the gasoline pool. (Sources: Bloomberg, American Farm Bureau, National Corn Growers Association, DTN, Politico)
