US senators seek to expand sales of ethanol-gas blend with support from Big Oil

By Stephanie Kelly

(Reuters) – U.S. senators reintroduced a bipartisan bill on Tuesday that would allow nationwide sales of gasoline with a higher blend of ethanol year-round, as a second heavy-weight oil trade group appeared ready to back the idea.

Republican Senator Deb Fischer from Nebraska and Democratic Senator Amy Klobuchar from Minnesota – both major corn-producing states – argue that the expanded sales of E15, or fuel containing 15% ethanol, would decrease gasoline prices and reduce U.S. dependence on foreign oil. The biofuel industry has long desired year-round E15 sales. Corn farmers would also benefit from this increased market.

Since its introduction last autumn, the American Petroleum Institute (API), which is one of the most important U.S. oil trade organizations, has supported the bill. It started working with the Renewable Fuels Association (a biofuels trade association) on increased nationwide E15 sales. The request was made by governors of major corn-producing Midwestern States to the U.S. Environmental Protection Agency, Reuters reported previously. Oil industry fears were raised by the governors’ efforts, which led to concerns about the possibility of a patchwork in fuel regulations and logistical problems around distribution.

Another top U.S. oil company, American Fuel and Petrochemical Manufacturers, signaled Tuesday that it might support a national standard.

AFPM stated that the bill required work but that a legislative approach was better than creating requirements for new fuel mixtures.

AFPM didn’t take a position last autumn on the bill.

The governors’ proposal is moving forward. The EPA responded to their request in March by proposing to allow E15 sales year round in these states. The rulemaking would be in effect by the summer 2024, but it is still subject to public comment.

E15 is not sold in summer because of concerns about smog. However, research has shown that the higher-quality blend may not cause more smog than the 10% E10 blend that is available all year.

(Reporting by Stephanie Kelly, New York; Editing By Lisa Shumaker

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