Lawmakers are drafting new fuel rules that would allow for the year-round, nationwide sale of higher-ethanol E15 gasoline, according to a draft seen by Bloomberg. This move is a significant win for the ethanol industry, which has long pushed for greater market access for E15, a blend containing 15% ethanol.
The proposed legislation also includes changes to the small refinery exemption (SRE) program. While details are still emerging, the draft indicates that the SRE program would be significantly restricted compared to its current form. This restriction could impact some refiners, as the current system has at times granted numerous waivers to facilities across the country.
The legislative effort, which aims to reconcile the interests of the oil and biofuels sectors, suggests a compromise where increased E15 access is paired with a revised SRE framework. The exact financial implications for refiners and ethanol producers, as well as the potential impact on consumer fuel costs, are still being analyzed as the draft moves through the legislative process.
