FARM PROGRESS: House approves year-round E15 in bipartisan vote

Year-round summer E15 is one step closer to reality after the House of Representatives approved a bill authorizing summer sales Wednesday evening. In a bipartisan vote that split members of both parties, lawmakers approved the Nationwide Consumer and Fuel Retailer Choice Act by a margin of 218-203. The bill now heads to the Senate where it faces an uncertain future. President Donald Trump indicated he plans to sign the bill if it gets to his desk.

“We are thrilled to see that E15 legislation passed the House today and are deeply appreciative of the legislation’s sponsors, co-sponsors and all its congressional supporters,” National Corn Growers Association President Jed Bower said in a statement shortly after the vote.

“Passage of this bill is essential to the success of corn farmers and rural communities, particularly as our growers face their fourth year of net losses and struggle with high input costs.  It would also help drivers across the country who could save 10 to 30 cents per gallon on gas as fuel prices continue to rise.”

Brian Jennings, American Coalition for Ethanol CEO, issued a statement specifically thanking Reps. Randy Feenstra, Michelle Fischbach, Adrian Smith, Dusty Johnson, Angie Craig, Sharice Davids, Shontel Brown and Nikki Budzinski for their efforts to secure summer E15. He called the vote a “significant milestone,” adding ACA would be committed to “helping build on this momentum” and get Senate approval.

“As gas prices continue to skyrocket across the United States, allowing E15 to be sold year-round is the fastest way to save consumers at the pump and help make America more energy secure in the face of the oil supply disruption in the Strait of Hormuz,” Jennings said. “E15 would also help American farmers coping with the worst economic conditions in a generation by increasing corn demand domestically.”

E15 is currently available at more than 4,800 locations in the U.S. According to data from the Renewable Fuels Association, full adoption of E15 would increase corn consumption by 2.4 billion bushels and raise corn prices by 35 cents per bushel. The RFA also projects full adoption would add $25.8 billion to U.S. gross domestic product and support an additional 128,000 full-time jobs.

“Today’s passage of year-round E15 legislation is a hard-fought victory for consumers seeking lower prices at the pump, farmers seeking new market opportunities, and American families who want cleaner air and greater energy independence,” RFA President and CEO Geoff Cooper said. “At a time of extreme market volatility and higher costs, this bill provides badly needed certainty for fuel retailers, oil refiners, ethanol producers, and consumers alike.

While the vote passed with bipartisan support, it also faced significant bipartisan opposition. Eighty-three Republicans as well as 113 Democrats opposed the legislation.

Officials with the American Soybean Association note that recent findings of both the University of Missouri Agricultural Policy Research Institute and the Congressional Budget suggest the bill as written could harm soybean producers. Those studies suggest permanent small refinery exemptions included in the bill could actually contribute to reduced net farm income as well as negative economic impacts for soybean farmers and the broader agriculture economy.

“Moving forward, ASA will continue working with lawmakers and stakeholders to advance solutions that enable year-round E15 without rewarding petroleum refiners who do not comply with the Renewable Fuel Standard at the expense of a critical domestic market for U.S. soy,” ASA officials said in a press release shortly after the vote. “Year-round E15 legislation must be pursued with a collective goal of strengthening farm income and supporting markets for both soybean and corn farmers.”