Key Takeaways
- A coalition of farm and fuel groups urges lawmakers to prioritize U.S. ethanol expansion and limit exemptions from the Renewable Fuel Standard.
- The newly established E-15 Rural Energy Council aims to propose solutions for ongoing conflicts affecting farmers and refiners.
- Concerns arise about the council’s potential to tackle broader biofuel policies, which could delay necessary legislation ahead of the summer driving season.
Pressure for Biofuel Legislation
In recent discussions, a dozen farm and fuel organizations have called on lawmakers to concentrate on enhancing U.S. ethanol availability while limiting exemptions under the Renewable Fuel Standard (RFS). This initiative follows the establishment of the E-15 Rural Energy Council, which was created to explore measures enabling year-round sales of higher ethanol blends.
The E-15 bill was initially part of a larger funding package intended to prevent a government shutdown. However, this effort faltered amid resistance from small, independent oil refiners who oppose many aspects of the RFS, particularly concerning small refinery exemptions (SREs). This friction has left both corn farmers and the American Petroleum Institute (API) expressing discontent and urging lawmakers to expedite the legislative process.
The API, representing major oil and gas interests, contends that the current exemption framework creates market distortions and uncertainty. In contrast, smaller independent refiners argue that the compliance costs imposed by larger refiners jeopardize their viability. In light of the E-15 bill’s collapse, House lawmakers formed the council, led by Republican Reps. Randy Feenstra of Iowa and Stephanie Bice of Oklahoma, to address the challenges faced by both farmers and refiners.
Democratic representatives have requested inclusion in the council, which aims to produce actionable proposals by February 15, intending for Congress to consider a bill shortly thereafter. The Renewable Fuels Association, Growth Energy, and the American Farm Bureau Federation have cautioned that a focused approach on E15 production and sales is crucial, especially as farmers make planting decisions.
The urgency is underscored by the need for a stable policy environment to benefit fuel producers and retailers ahead of the summer season. The organizations warned that expanding the council’s focus to broader issues could impede timely legislative progress. Additionally, the American Soybean Association has expressed concerns about potentially reviewing extensive biofuel policies, such as the RFS, which is vital for supporting U.S. soybean markets.
With the council’s deadline approaching, stakeholders remain hopeful for a swift legislative solution aimed at reinforcing the U.S. ethanol market and addressing ongoing disputes with refiners.
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