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Congress debates ethanol measure in spending bill

Dec 18, 2024
By Farms.com

Proposal boosts e15 year-round sales

The US ethanol industry may see a breakthrough as Congress considers a measure enabling year-round E15 sales. This higher ethanol blend, containing 15% ethanol, is currently restricted during summer due to environmental rules.

This measure, part of a stopgap spending bill to avoid a government shutdown, is vital for the biofuel sector’s future. For over a decade, the industry has sought nationwide E15 availability.

The proposal, backed by bipartisan support, aligns agriculture and oil industries, with endorsements from the American Petroleum Institute and farm groups.

Most gasoline in the US contains 10% ethanol. Allowing E15 sales throughout the year could increase corn demand and strengthen farmer revenues, especially amid falling crop prices. “E15 access year-round is a crucial step for our industry’s growth,” stated key ethanol advocates.

The measure is still subject to last-minute changes in negotiations, but if passed, it could transform biofuel accessibility. This policy also emphasizes the importance of renewable energy and supports sustainable agriculture.

If implemented, this initiative would provide immediate benefits to farmers and renewable energy advocates while maintaining consumer choice for lower ethanol blends.


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Next week’s USDA reports (acreage/stocks) could be a surprise/market moving. RVO’s (new blending biofuel requirements) were as expected with no big surprises and already baked into futures. E15 summer waiver just simply good optics. Markets are skeptical that the war in Iran ends soon with no diplomatic off ramp. The Trump/Xi meeting in China now May 14 – 15. March 1 USDA hogs and Pigs report was friendly/bullish + CFTC and more.