Corn growers expected Congress to pass legislation last week that would expand access to E15, gasoline blended with 10.5 percent to 15 percent ethanol. The alternative fuel is most commonly produced from field corn.
Instead, lawmakers proposed creating an “E15 Rural Domestic Energy Council” to study refinery capabilities, how sales would work and other considerations.
The move comes after decades of advocacy by farmer groups seeking approval for year-round E15 sales nationwide. Senior Public Policy Director for the Minnesota Corn Growers Association, Amanda Bilek, said the proposal took her by surprise.
“We had done our job in trying to get an agreement with a segment of the oil sector just to have the rug pulled out a little bit from under us,” Bilek said.
Oil and ethanol groups have often been at odds over E15. President Donald Trump issued a rule approving year-round E15 sales during his first administration, which an appeals court later struck down following an oil refining trade group’s lawsuit.
As it stands, the Clean Air Act has barred the sale of fuel with 15 percent ethanol nationwide during the Summer due to emissions concerns. Currently, only eight states, including Minnesota, are permitted to sell the alternative fuel year-round.
When talks about expanding E15 sales took place in Congress, Bilek said one of the biggest point of contention came from members who represented areas with medium- and small-scale refineries, as they worried that E15 sales could negatively impact job providers in their communities.
“The house had worked out this deal among some of the members representing areas of biofuels, and some of these refinery interests that needed a little bit more time to work out some of the details of this compromised agreement,” Bilek said.
The postponement of E15 sales comes at a time when corn prices are already depressed, sinking further after the USDA reported an unexpected glut.
Farmers such as Richard Syverson of Benson are hoping to see an expansion of E15.
“I'd love to see development,” Syverson said. “There are new things coming besides surface transportation use for ethanol; the use in ships as they come into port could be a big market for us. Sustainable aviation fuel is a huge potential market for us.”
Syverson, who is a board member of the Minnesota Corn Growers Association, said he’s used to being disappointed by E15 legislation being postponed.
“I get frustrated, I get tired,” Syverson said. “And yet this is America, and we have the freedom to make choices, and we have the freedom to advocate and be passionate about our point of view.”
Congress has since proposed a Feb. 25 deadline to take action on E15.
“We do have some level of optimism that there is at least some timelines for getting this issue addressed and figuring out what is going to bring all parties to the table and provide a good solution for everybody,” Bilek said.
