Big Setback for E15: API Withdraws Support for Biofuel Expansion, Citing Market Shifts

API said it stands ready to work with Congress to develop a balanced approach to E15 legislation that promotes fuel choice, supports investment certainty, and contributes to a stable and fair marketplace for American consumers.

NASHVILLE, Tenn. (RFD-TV) — The American Petroleum Institute (API) signals that its support of E15 is waning, just as the push for year-round sales was beginning to pick up steam, and offers corn growers a glimmer of hope for greater market expansion for biofuel as they face low prices and harvest record crops. In a letter to Congress, the group cited shifting refinery regulations and market uncertainty as reasons for withdrawing its endorsement of the Nationwide Consumer and Fuel Retailer Choice Act of 2025.

The API released a letter to U.S. House and Senate leaders today (PDF version) saying, in part:

“When the Nationwide Consumer and Fuel Retailer Choice Act of 2025 was introduced, it reflected a set of assumptions about the biofuels and liquid fuels marketplace that have since changed dramatically. Over the past eight months, legislative, regulatory, and market developments have created a substantially different operating environment for refiners and fuel suppliers. These changes have led API to reassess its position and, ultimately, oppose advancement of the Nationwide Consumer and Fuel Retailer Choice Act of 2025 in its current form.”

According to the API, over the past eight months, legislative, regulatory, and market developments have created a substantially different operating environment for refiners and fuel suppliers. These changes led API to reassess its position and, ultimately, oppose the advancement of the Nationwide Consumer and Fuel Retailer Choice Act of 2025 in its current form.

“Recent EPA action on RFS Small Refinery Exemption (SRE) petitions and pending action on potential reallocation of volumes from SREs disrupts established market dynamics by effectively rewarding certain small refineries that have not invested in RFS compliance while punishing those who have,” the API said.

API continues, saying: “Refiners are now navigating shifting federal compliance structures, a patchwork of state mandates, and a biofuels marketplace that is uncertain. As such, any legislative consideration of year-round E15 should reflect today’s realities and not those of prior years. This means adopting a more holistic approach to E15 within a policy framework that considers the needs and challenges of liquid fuels market participants, including those who have made substantial investments in making the RFS function as intended and continue to supply affordable, reliable liquid fuels to American consumers.”

API said it stands ready to work with Congress to develop a balanced approach to E15 legislation that promotes fuel choice, supports investment certainty, and contributes to a stable and fair marketplace for American consumers.

This is a developing story. RFD-TV News will bring you more coverage on this story during Market Day Report and the Rural Evening News.

Related Stories
The National Cattlemen’s Beef Association and Public Lands Council published a joint press release regarding the advancement of legislation to delist the Mexican Gray Wolf from the Endangered Species Act.
Placements and marketings beat expectations, but declining on-feed totals and feeder constraints keep the supply story supportive for cattle prices into 2026.
USDA Rural Development Director for Kentucky, Travis Burton, joined us to discuss the Princeton facility (formerly Porter Road Meats), now backed by the USDA, and its role in expanding domestic meat processing capacity.
Farm CPA Paul Neiffer joined us to break down the recent Fifth Circuit Court decision overturning a prior Tax Court decision on self-employment tax for limited partners, the ruling’s impact on farmers, and potential next steps in Congress.
Congressman Adrian Smith of Nebraska joined us with the latest on efforts to secure year-round E15 sales.
Large-scale land purchases signal rising competition for ranchland, reinforcing its value while reshaping long-term access and control in rural agriculture.
Jack Hubbard, with the Center for the Environment and Welfare, shares context and perspective on the controversial letter about Prop 12 circulating in Washington and how a review shows it misled the public.
Decoupled base acres may amplify income inequality and distort planting decisions as farm program payments increase.
From tariff talks in Europe to SCOTUS uncertainty and rising farm losses, analysts say policy and global supply will shape grain markets in the year ahead.