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
Missoula lab combines controlled testing with field data to improve wildfire response
Rising input costs may squeeze margins and shift planting decisions. Scott Metzger with the American Soybean Association discusses fertilizer market pressures and what is at stake for farmers as planting season ramps up.
Farm Bureau economist Danny Munch discusses the USDA’s request for feedback on data and research, how such requests work, and what farmers should know about submitting comments before the Thursday, April 9 deadline.
Farm Bureau groups in Arkansas and Mississippi are working together to provide training and resources to rural communities.
This third-generation seafood family transitioned from shrimping and now produces millions of oysters each season along Texas’ Gulf Coast.
Georgia Ag Commissioner Tyler Harper explains the growing threat of invasive hornets in his state and what Southeastern growers should watch for this spring.

LATEST STORIES BY THIS AUTHOR:

Roger McEowen discusses how long-term healthcare costs for elderly Americans are reshaping estate-planning decisions for farm families and what producers should consider moving forward.
Farmer Jeffry Mitchell with the Mississippi Farm Bureau joins us for a spring planting update from the southeast region as drought, input costs, and fertilizer access complicate crop progress.
Cattle producers face mounting pressure as U.S.-Mexico trade talks resume, but expanding drought, rising input costs, and policy work to improve the long-term industry outlook.
The White House’s plan calls for a nearly 20 percent reduction in the USDA’s budget, which would impact various food and agriculture aid programs.
More Farms File for Bankruptcy As Strong Farm Loan Demand Boosts Bank Earnings
JBS representatives told Reuters that the original deal has not changed and that they welcome employees back to the facility.