U.S. Congress Passes E15, Moving Bill to Senate


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- U.S. lawmakers are preparing to submit a Senate vote 
for legislation passed by the House to permit year-round nationwide E15 sales, 
offering a discounted fuel option for consumers facing surging pump prices 
linked to the Middle East conflict.

   The House of Representatives passed on Wednesday (5/13) the Nationwide 
Consumer and Fuel Retailer Choice Act, which permits all-year federal sales of 
E15, in a 218-203 vote. The E15 contains 15% ethanol compared with the regular 
E10 gasoline with 10% ethanol.

   The American Petroleum Institute (API), in a statement issued Wednesday, 
said the legislation will allow retailers to offer the discounted E15 while 
preserving E10 availability, enabling consumers to have a choice.

   API said it joins "a broad coalition of energy producers, small refiners, 
biofuel stakeholders, agriculture groups, fuel retailers, and equipment 
manufacturers in urging lawmakers to advance this legislation."

   The bill now moves to the Senate, where it requires 60 votes to overcome a 
likely filibuster and secure final passage despite the House victory.

   Proponents argue that expanded E15 access will boost biofuel demand and 
reduce pump prices following recent market spikes linked to the Middle East 
conflict. The average pump price for the E15 nationwide is $4.50 gallon, up 
from $3.25 a year ago, data from the U.S. Energy Information Administration 
(EIA) showed.

   Conversely, some sections of the refining sector have expressed concern that 
a mandate for E15 could increase compliance costs and create additional 
financial burdens for domestic fuel processors. Opponents also cite a 
Congressional Budget Office projection that the measure would increase the 
federal deficit by $2.3 billion through 2036, fueling fiscal concerns among 
refiners.

   Regulatory hurdles in states like California, which require distinct 
"CARBOB" blends and unique vapor pressure certifications, have also blocked a 
seamless nationwide rollout of the E15. California gasoline prices are 
typically the highest in the U.S., with E10 averaging $5.189 gallon in the 
state and $5.613 in the West Coast, EIA data shows.




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