Ethanol Blog

LINCOLN, Neb. (DTN) -- Christmas could come early for the U.S. ethanol industry as language to allow E15 sales year-round nationally is included in a year-end continuing budget resolution and biofuels groups are pushing Congress to get that bill across the finish line.

The U.S. House of Representatives on Tuesday night released text language of the whole package that would include economic aid for farms.

RFA President and CEO Geoff Cooper said in a statement to DTN that the language brings the ethanol industry the long-sought E15 solution.

"We are very pleased to see that the long-awaited fix allowing year-round E15 is included in this package," he said. "This language would finally remove an outdated, red-tape regulatory barrier, and we remain hopeful that the continuing resolution will move swiftly through Congress and to the president's desk for signature. Allowing year-round sales of E15 will benefit farmers, fuel retailers, and most importantly, consumers seeking lower-cost, cleaner fuel options at the pump.

"RFA thanks House leadership, the Energy and Commerce Committee leadership and dozens of House members on both sides of the aisle who staunchly advocated for the inclusion of this long-overdue provision allowing year-round E15 nationwide. We also thank the many bipartisan ethanol supporters in the Senate who have worked tirelessly on this issue over the past several years, and we look forward to them quickly taking up and passing the CR."

The RFA said at an average price of $2.62 per gallon nationwide, E15 is currently selling at an 8.7% discount to E10, saving drivers an average of 26 cents with each gallon.

Growth Energy CEO Emily Skor said consumers would benefit immediately from being able to buy E15 year-round.

"E15 lowers emissions, saves drivers money and increases American energy dominance," she said.

"Giving consumers the chance to choose this fuel year-round would be an early Christmas present to American drivers, the nation's rural communities that depend on a strong renewable fuels sector, and to the environment. We are grateful for the tireless work of our numerous Congressional champions to get this bill included, and that Congressional leadership has endorsed this common sense, bipartisan, bicameral energy solution, and encourage senators and representatives to vote in favor of this package so that year-round E15 becomes the law of the land."

Brian Jennings, CEO of the American Coalition for Ethanol, said the E15 fix is a long time coming.

"Legislation to ensure year-round availability of E15 in the U.S. has been at the top of our to-do list for a very long time," he said in a statement.

"We are enormously grateful to our champions in Congress who persistently worked to include this provision in the year-end package. Inclusion of this provision will drive demand for homegrown, low-carbon ethanol, tackle inflation by delivering savings at the pump for consumers and strengthen America's energy security. We are deeply grateful to the senators and representatives who fought tirelessly to make this happen."

In addition, the continuing resolution includes relief for small refiners from their renewable identification numbers, or RINs, obligations in the Renewable Fuel Standard for 2018. That relief is for a handful of refiners that did not qualify for small-refinery exemptions.

Todd Neeley can be reached at todd.neeley@dtn.com

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