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
USDA says growing soybean output and expanding biofuel demand are helping drive the increase.
Changes to several Risk Management Agency programs are set to begin with the 2027 crop year.
Large animal vets say the parasite is now showing up in regions where it historically has not been common.
National Pork Board’s Andy Tauer discusses the growing popularity of the Boston Butt Pork Burger and key topics at the USMEF Spring Conference.
NRCS leadership affects how conservation dollars, technical assistance and working-lands priorities reach farmers and ranchers.
At the center of the announcement is the Blue Point Project in Louisiana, a $3.7 billion ammonia facility, USDA says, that will become the world’s largest ammonia plant once completed.

LATEST STORIES BY THIS AUTHOR:

Jenna Stanton with the United States Cattlemen’s Association joins us to discuss beef import concerns, cattle market signals, and the latest developments surrounding U.S. beef trade.
Farmers will soon be asked to help shape some of USDA’s most closely watched crop and inventory reports.
RealAg Radio Host Shaun Haney joins us to discuss the latest U.S.-China ag trade agreements, market reaction, and what producers should watch moving forward.
Rayburn Electric Cooperative’s Chris Anderson discusses rapid AI data center expansion, mounting pressure on the electric grid, and impacts on agriculture and rural communities.
ASFMRA’s Paul Burgener shares updates on the Hunggate Fire, Panhandle wildfire conditions, infrastructure damage and potential impacts to agriculture in the region.
For producers, the next proof will be actual export sales, shipment pace, and buyer breakdowns.