WASHINGTON, D.C. (RFD NEWS) — Frustration continues to build across agriculture over the lack of progress on securing year-round E15 sales, after the provision was left out of the latest federal spending bill. A potential stalemate in the push for year-round E15 sales is a story that is dominating the markets. Efforts to secure year-round access could soon shift to a newly approved council tasked with studying the issue.
The Renewable Fuels Association (RFA) says the industry was very close to final approval and is frustrated by the delay.
Iowa Renewable Fuels Association Executive Director Monte Shaw says the measure was expected to be included in a spending bill due at the end of January.
“It was supposed to be in a spending bill, one of those spending bills that’s coming due. They’re called mini-buses, continued resolutions (CRs),” Shaw explains. “All this stuff is coming due at the end of January, from when we had the government shutdown before. It was supposed to be in there. It was agreed to be in there, and then some senators from primarily oil states got it pulled out.”
Instead of moving forward with a separate bill, the House Rules Committee has now approved the creation of a special council to study year-round E15 sales. The move has drawn criticism from agricultural stakeholders.
National Corn Growers Association (NCGA) President Jed Bower says corn growers are “disgusted, disappointed, and disillusioned” after years of pushing for E15 passage, adding that Congress has again delayed action in what he described as a “spectacularly weak and offensive way.” Bower also criticized the plan to establish a rural energy council, saying it treats E15 as if discussions are just beginning.
The American Farm Bureau Federation (AFBF) is also calling for E15 to be written into law. Economists there say expanding year-round E15 is one way to help use the current crop surplus. AFBF economist Dr. Faith Parum joined us on Thursday’s Market Day Report to speak on AFBF’s push to increase domestic demand for ethanol as an effective way to help stabilize farm markets and prices.
“Increasing domestic demand, anyway possible to help keep these farmers’ markets and have steady prices. One really easy way is year-round E15,” Parum said. “That would be an easy button for Congress that would really help our corn growers. But any types of market demand increases will be great for our farmers and ranchers.”
In addition to increased domestic demand, AFBF is also calling for more farmer assistance, with special attention to specialty crop producers.
Ag Lawmakers Push for Year-Round E15 in the House and Senate
Rep. Adrian Smith (R-NE) joined us on Friday’s Market Day Report to discuss the growing concerns of farmers, traders, and lawmakers who hoped to see year-round E15 included. Smith addressed his own frustration with the omission and explained what happened when the House instead agreed to form a committee to study year-round sales — a move that drew criticism from the NCGA.
In his interview with RFD NEWS, Smith addressed the backlash from biofuel groups, including Growth Energy, which has sharply criticized the process, and responded to those concerns, outlining what the next week could look like as lawmakers work toward passing a new spending bill before the current one expires.
Smith also discussed a path forward for growers if year-round E15 sales are not secured and shared a message of optimism amid uncertainty about grain supplies, which remain elevated. He closed with final thoughts on the outlook for E15 and agricultural priorities moving forward.
Senate agriculture lawmakers are also weighing in on the push for year-round E15 sales. Senate Ag Committee Member, Sen. Chuck Grassley (R-IA), told reporters this week that the issue needs to be made permanent through legislation. He said the industry needs a law that provides long-term certainty and encourages retailer investment in pump infrastructure to enable E15 and higher blends.
“We need a law that says that this is going to be something that’s going to last forever,” Sen. Grassley said. “And that it’s going to get the investment that it needs from the retailers to put in the pumps and change their pumps to allow E15 all the way up to E85. And it’s not a simple process of just putting a certain amount of gas.”
Grassley added that work must continue in the weeks ahead to secure year-round E15 in law. The Senate returns to work on Monday, with the current government spending bill set to expire on Friday.
