Biofuel groups criticize omission of year-round E15 sales from spending bill

US corn growers and ethanol producers have criticized the exclusion of bipartisan legislation permitting year-round sales of E15 gasoline blends from the latest appropriations package approved by the House of Representatives on Jan. 22.

Lawmakers said they have opted to create a new E15 Rural Energy Council to develop "legislative solutions."

E15 sales are restricted during the summer, with the US Environmental Protection Agency granting temporary waivers or limited state-by-state approvals to maintain availability.

A year-round E15 allowance would enable nationwide sales of gasoline blended with 15% ethanol even during the summer months, rather than the default 10%, eliminating regulatory uncertainty and boosting demand for corn and ethanol.

American Coalition for Ethanol CEO Brian Jennings said in a statement Jan. 22, "Any new legislative package considered by Congress must expand, not limit, market access for ethanol."

ACE is a grassroots ethanol advocacy organization. Jennings said the group still expects lawmakers to act before the summer driving season.

The approved bill will move to the US Senate for consideration, while a partial federal government shutdown is set to begin on Jan. 30.

The deadline creates additional uncertainty as the US summer driving season approaches -- from April to September, when gasoline demand peaks -- biofuel trade group Renewable Fuels Association said Jan. 22.

"We already have a compromise deal that is broadly supported by ethanol producers, farmers, large oil refiners, several small oil refiners, fuel retailers and many other stakeholders, but lawmakers appear to be letting it slip away," RFA President and CEO Geoff Cooper said in a statement.

The National Corn Growers Association said Jan. 22 that corn growers are disappointed "that after spending years of calling for passage of E15, Congress has again punted," calling the formation of a council a "process-ridden task force."

Platts, part of S&P Global Energy, assessed Ethanol Chicago Pipeline at $1.5910/gal on Jan. 22, up 0.9% day over day.

Platts assessed US Yellow Corn CIF New Orleans for January shipment at $5.18/bushel, up 1% from the day before.