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 Overstreet family’s cattle operation combines conservation practices with decades of resilience.
UT Institute of Agriculture reporter Charles Denney visited a class at Ijams Nature Center in Knoxville, where students in the School of Natural Resources traded traditional classrooms for hands-on outdoor learning.
RealAg Radio’s Shaun Haney and other experts break down ongoing energy market volatility, its impact on producer decision-making, and key indicators farmers should monitor moving forward.
The New World Screwworm case was detected roughly 119 miles from the U.S.-Mexico border — at nearly the same latitude as Zapata, Texas.
On Tuesday’s Cow Guy Close, host Scott Shellady spoke with USDA Deputy Secretary Stephen Vaden about the decision, what he saw during a recent tour of the property, and why the department believes closure is the best path forward.
Farm legal expert Roger McEowen joins us to discuss the importance of a traditional Farm Bill and his concerns over shifting policy approaches.

LATEST STORIES BY THIS AUTHOR:

NRECA CEO Jim Matheson joins us to discuss rural electric co-ops’ push for expanded USDA loan programs, rising energy demand from data center expansion, wildfire mitigation and other policy priorities impacting rural power infrastructure.
StoneX’s Josh Linville discusses USDA’s efforts to boost domestic fertilizer production and his outlook on supply and prices.
With the Farm Bill now in the Senate’s hands, industry groups say the stakes are high—and timely action could be critical for producers navigating a difficult economic environment.
The Texas Department of Agriculture confirmed a New World Screwworm case about 119 miles from the Texas border, near Zapata, Texas, and north and west of the Rio Grande Valley.
Tennessee corn and soy farmer Josh Ogle joins us to discuss rapid planting progress in the state, improving moisture conditions, and early crop development challenges in the MidSouth region.
Paul Neiffer joined us to explain how USDA’s base acre expansion will be calculated, outline key deadlines for farmers, and discuss how the changes tie into farm program decisions and the broader Farm Bill outlook.