Short-term funding bill includes E15, Farm Bill provisions

December 18, 2024

BY Erin Voegele

Congress on Dec. 17 released the text of a short-term funding bill that aims to avoid a partial government shutdown. The package includes provisions allowing year-round sales of E15 and enacting a new one-year extension of the 2018 Farm Bill. 

A partial government shutdown will occur Dec. 20 unless lawmakers can pass a short-term spending bill before that time. A copy of the bill released late Dec. 17 includes language that would extend the current Reid vapor pressure (RVP) waiver for fuel blends containing 10% ethanol to fuel blends containing 10 to 15% ethanol. The change would allow E15 to be sold year-round on a nationwide basis. 

The Renewable Fuels Association has applauded the E15 provisions of the bill. “We are very pleased to see that the long-awaited fix allowing year-round E15 is included in this package,” said Geoff Cooper, president and CEO of the RFA. “This language would finally remove an outdated, red-tape regulatory barrier, and we remain hopeful that the continuing resolution will move swiftly through Congress and to the president’s desk for signature. Allowing year-round sales of E15 will benefit farmers, fuel retailers, and—most importantly—consumers seeking lower-cost, cleaner fuel options at the pump.”

“RFA thanks House leadership, the Energy and Commerce Committee leadership, and dozens of House members on both sides of the aisle who staunchly advocated for the inclusion of this long-overdue provision allowing year-round E15 nationwide,” Cooper continued. “We also thank the many bipartisan ethanol supporters in the Senate who have worked tirelessly on this issue over the past several years, and we look forward to them quickly taking up and passing the CR.”

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Growth Energy is also speaking out in support of the legislation’s E15 provisions. "E15 lowers emissions, saves drivers money, and increases American energy dominance,” said Emily Skor, CEO of Growth Energy. “Giving consumers the chance to choose this fuel year-round would be an early Christmas present to American drivers, the nation's rural communities that depend on a strong renewable fuels sector, and to the environment.”

“We are grateful for the tireless work of our numerous Congressional champions to get this bill included, and that Congressional leadership has endorsed this commonsense, bipartisan, bicameral energy solution, and encourage Senators and Representatives to vote in favor of this package so that year-round E15 becomes the law of the land,” Skor continued. 

The American Coalition for Ethanol thanked congressional leaders for including the E15 provisions in the legislative package. “Legislation to ensure year-round availability of E15 in the U.S. has been at the top of our to-do list for a very long time,” said Brian Jennings, CEO of ACE. “We are enormously grateful to our champions in Congress who persistently worked to include this provision in the year-end package.

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“Inclusion of this provision will drive demand for homegrown, low-carbon ethanol, tackle inflation by delivering savings at the pump for consumers and strengthen America’s energy security,” Jennings added. “We are deeply grateful to the senators and representatives who fought tirelessly to make this happen.”

While the short-term spending bill may finally allow nationwide year-round sales of E15, use of E15 fuel is not new. The fuel blend has been available for use in many non-flex fuel vehicles for more than a decade. The EPA first granted a partial waiver allowing E15 to be used in model year (MY) 2007 and newer light-duty vehicles in 2010. The agency expanded that waiver to include MY 2001 and newer vehicles the following year. The fuel blend, however, could not be sold in most markets during the summer driving season, from June 1 through Sept. 15. A June 2019 rulemaking changed that, extending the 1-psi RVP waiver to E15 and allowing the fuel to be sold during the summer driving season. The EPA’s rule was challenged by oil groups and in June 2021 the D.C. Circuit Court of Appeals vacated the portion of the June 2019 related to E15, overturning the ability of most fuel retailers to sell E15 during the summer driving season. Despite the vacated rule, E15 continued to remain available during the summer 2022, 2023 and 2024 driving seasons via emergency waivers issued by the EPA. 

In the absence of permanent national action on E15 availability, a coalition of Midwest governors in April 2022 petitioned the EPA to allow E15 to be sold year-round in their respective states. Following a lengthy rulemaking process, the agency in February 2024 finalized regulations that will allow E15 to be sold year-round in Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin beginning in 2025. 

California is currently the only state that does not allow E15 to be sold for use in non-flex fuel vehicles, but that could soon change. State agencies in 2018 kicked off the required review process to approve the use of the fuel blend. That process typically takes two to five years to complete but has faced delays.  California Gov. Gavin Newsom on Oct. 25 issued a directive to the California Air Resources Board to accelerate efforts to approve E15 sales within the state to help lower gas prices without compromising environmental protections. 

In addition to E15, the short-term spending package also includes a one-year extension of the current Farm Bill. Congress most recently passed a Farm Bill package in 2018. That legislation was set to expire on Sept. 30, 2023. Lawmakers, however, extended the provisions of the 2018 Farm Bill for one year, through Sept. 30, 2024, as part of a stopgap bill approved on Nov. 14, 2024, to avoid a government shutdown. That extension is now expired. A similar one-year extension is included in the new short-term spending package released Dec. 17. Congress is expected to take up the development of a new Farm Bill next year. 

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