E-15 Expansion Stalls Amid Industry Concerns

The expansion of E-15, a higher blend of ethanol in gasoline, has been a contentious issue for years. When Congress passed the Energy Independence and Security Act (EISA) in 2007, it was assumed that US demand for fuel would continue to grow, and new technologies would emerge to produce biofuels from non-corn sources on a cost-competitive basis. However, these assumptions have not panned out.

According to the Energy Information Agency (EIA), daily US use of motor vehicle fuel has stagnated since 2007, with a significant decline in 2020 due to COVID-related travel restrictions. While biofuels manufacturers have exceeded the annual 16-billion gallon requirement set by EISA, most of the qualifying fuel is biomass-based diesel made from vegetable oil and animal fats.

The lack of growth in motor vehicle fuel usage has constrained US ethanol demand, known as the ethanol blend wall. The Environmental Protection Agency (EPA) granted a permanent waiver to allow up to 10 percent ethanol in gasoline blends, but supporters of ethanol have pushed for higher blends, including E-15. After extensive studies, the EPA allowed year-round use of E-15 in 2019, but this was overturned by a federal appeals court in 2021.

Currently, eight Midwest states are allowed to sell E-15 on a regional basis, and in March 2026, the EPA issued a nationwide waiver for summer months. The renewable fuel sector is also pursuing gains in other transportation sectors, such as aviation and farm equipment.