Ethanol Blog

LINCOLN, Neb. (DTN) -- The head of the American Fuel and Petrochemical Manufacturers has expressed opposition to legislation working its way through Congress that would allow permanent, year-round national E15 sales, in a letter last week to House Speaker Rep. Mike Johnson and Senate Majority Leader John Thune.

AFPM's President and CEO Chet Thompson said in the July 25, 2025, letter to the GOP leaders that the current track of national fuels policies that he says will "negatively impact consumers, our members and the president's energy dominance agenda."

Thompson tells Johnson and Thune that the latest Renewable Fuel Standard proposal from the Trump administration is "bad" for consumers and the refining industry.

"EPA has proposed the highest ever Renewable Fuel Standard mandate on the U.S. refining industry," the letter said.

"By EPA's own calculation, the proposed rule would impose compliance

costs of approximately $6.7 billion per year, while returning benefits of only $200 million per year. AFPM's analysis estimates compliance costs will be closer to $70 billion."

Thompson also calls out the EPA proposal to limit renewable identification numbers generation on renewable fuels produced in the U.S. using imported feedstocks.

"This credit restriction, as well as the higher volumes they support, will jeopardize the economic viability of renewable fuel production assets and raise overall compliance costs for all obligated parties, which

ultimately harms U.S. consumers," he wrote in the letter.

Thompson said the EPA's lack of action on nearly 200 small-refinery exemption petitions to the RFS has "caused unacceptable uncertainty for small refineries and the RIN market."

Thompson said EPA's plan to reallocate SRE volumes to other RFS-obligated parties is not only not required by the Clean Air Act, but will "harm non-exempt parties, and will do nothing to increase the amount of renewable fuel produced in the country." He said it would only increase costs for consumers and obligated parties.

On the E15 front, Thompson said in the letter that EPA's refusal to extend the effective date on allowing E15 in eight Midwest states and in the meantime granting a summer waiver this year "stranded tens of millions of dollars in capital investment -- costs that would have been avoided" had EPA granted the initial extension request.

"The refining industry has received no assurances that this will not happen again in the future," Thompson said.

"EPA also granted nationwide RVP waivers for E15 despite fuel supplies being in the normal five-year average range."

Thompson said Congress not only removed the ability for many refiners to qualify for the 45Z clean fuels production tax credit but also authorized a "new subsidy" for ethanol.

"Tariffs were enacted and rightfully waived for energy products and feedstocks, with the exception of imported renewable feedstocks, an action that targets refining industry investments," Thompson said.

"Collectively, these policies are anathema to a strong U.S. refining industry and the significant investments our members have made in renewable fuel production. We understand support for some of these policies is intended to help promote the domestic agriculture and biofuel industries, for which the above are clearly designed. But these policies

should not come at the expense of the domestic refining industry and U.S. consumers."

Thompson asked Johnson and Thune to promote policies that are "balanced and make it possible for all stakeholders to thrive." He said that was the "lens through which AFPM will evaluate all future legislation."

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

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