An attempt to include in the House passed Farm Bill a provision to allow year-round U.S. sales of higher ethanol fuel blends, known as E15, became a major sticking point throughout consideration of the bill. The provision was removed after concerns arose that the biofuel measure might not have enough support amid oil refinery opposition and cost concerns and could therefore scuttle the Farm bill. Instead, a vote on E15 in a freestanding measure is now set for May 13.
E15, a top goal of ethanol producers and corn growers and sought by President Donald Trump, has been mired in oil industry infighting. The current bill includes a provision sought by the American Petroleum Institute (API) that would sharply limit the ability of small oil refiners to apply for biofuel-blending exemptions under the Renewable Fuel Standard. Many mid-size and small refiners are fighting the bill over the attempt to revamp the process for small refinery exemptions, or SREs.
For years, API, which represents large refiners, fiercely fought giving ethanol a greater share of America's gasoline pumps. Now they support E15, but the cost has been opposition from smaller refiners, who in January succeeded in lobbying lawmakers to stop a House bill from advancing at the last minute.
There's also a new E15 challenge from the Congressional Budget Office. CBO estimates the E15 bill would add billions of dollars to the U.S. deficit over the next decade. The projection stems from the SRE part of the legislation as opposed to the actual expansion of ethanol blends.