Year-Round E15 Sales Hang in Balance Over Small Refiner Exemptions

The year-round sale of higher ethanol-blended gasoline, called E15, faces uncertainty in the US Senate due to opposition from small oil refiners. According to Majority Leader John Thune, R-South Dakota, the bill needs compromises on exemptions for these refineries.

E15 supporters argue that it would strengthen the farm economy and make the country more energy independent. However, opponents point out research showing increased emissions could worsen summer smog, although the biofuels industry disputes this claim.

The US House approved a bill in May authorizing year-round E15 sales, but Thune stated that it 'probably' wouldn't pass without concessions to small oil refiners. He listed Montana, Wyoming, Oklahoma, Arkansas, and Tennessee as states with lawmakers who might support E15 if their refineries' concerns are addressed.

The dispute centers on the Renewable Fuel Standard, which requires oil refiners to blend a minimum amount of renewable fuels into their supply or pay compliance credits. Small refineries can obtain exemptions if they prove that complying would cause 'disproportionate economic hardship.'