ST. LOUIS, Mo. (RFD NEWS) — The U.S. ethanol blend rate reached a record 11.29 percent in May as expensive petroleum and favorable blending economics increased ethanol use. Renewable Fuels Association Chief Economist Scott Richman says the 12-month average also set a record at 10.57 percent.
Ethanol traded nearly $1.50 per gallon below gasoline blendstock during May. Renewable fuel credits also rose above ethanol prices, effectively making the physical fuel extremely attractive to refiners and blenders.
At the May blend rate, annual ethanol consumption would reach about 15.4 billion gallons if gasoline demand matched 2025 levels. That would exceed last year’s consumption by more than 1 billion gallons and strengthen corn demand.
Ethanol reduced the finished cost of E10 gasoline by about 14 cents per gallon in May. E15 delivered roughly 21 cents in fuel savings, plus additional renewable-fuel credit value.
Summer restrictions still limit E15 availability across much of the country. Permanent year-round authorization could expand ethanol use, support corn grind, ease renewable-fuel credit prices, and provide consumers additional protection from expensive gasoline.
Farm Bill Watch: Last Round in the Fight for Year-Round E15 Sales
As the Senate Agriculture Committee prepares to mark up its farm bill, supporters of year-round E15 sales are closely watching language included in the proposal that would permanently authorize the higher ethanol blend nationwide.
Renewable Fuels Association (RFA) President and CEO Geoff Cooper joined us on Wednesday’s Market Day Report to discuss the proposal and what it could mean for ethanol producers and corn growers.
In his interview with RFD News, Cooper said the inclusion of year-round E15 language in the Senate farm bill text is an encouraging step and represents a viable path toward finally securing permanent nationwide authorization. He said the Renewable Fuels Association’s top priority is ensuring the provision remains in the bill as it advances through the legislative process.
Cooper said permanent year-round E15 sales would gradually expand ethanol use and strengthen corn demand over time. While he noted the transition would not happen overnight, he said broader adoption of E15 over the next several years could significantly increase corn demand while also providing consumers with lower-cost fuel options.
He also addressed differences between the Senate and House versions of the legislation regarding small refinery exemptions under the Renewable Fuel Standard. Cooper acknowledged the issue could generate debate during the committee markup but said the association remains focused on preserving the E15 language.
Cooper also discussed EPA’s recent decision to grant one full and two partial small refinery exemptions while outlining a broader approach for future Renewable Fuel Standard petitions. He said the Renewable Fuels Association does not believe current market conditions justify refinery exemptions and continues to support a strong Renewable Fuel Standard without expanded waivers.
