OMAHA (DTN) -- Expected amendments to the farm bill to allow permanent year-round national E15 sales and put limits on small-refinery exemptions to the Renewable Fuel Standard are set for introduction in the U.S. House of Representatives on Wednesday.
The amendments have not been posted to the House website but were confirmed by a refining interest group that expressed opposition.
The measures come from a congressional group organized to explore the possibility of allowing year-round national sales of E15.
Another amendment would make changes to the way the U.S. Environmental Protection Agency would consider small-refinery exemptions including the way small refineries are defined.
It would include facilities that have previously received exemptions or produce no more than 10,000 barrels per day. The measure also would limit refineries receiving exemptions if they began production between Jan. 1, 2007, and Jan. 1, 2026. The EPA currently defines small refineries as those producing 75,000 barrels or fewer per day.
The Fueling American Jobs Coalition, a coalition of union workers and independent American oil refiners, expressed opposition to the measures.
"Ongoing efforts to force unchecked E15 expansion, without needed reforms to lower and prevent continuous increases in ethanol mandates, through yet another must-pass piece of legislation fly in the face of the Rural Domestic Energy Council and lawmakers' promises to pursue a responsible path forward," the group said in a statement on Wednesday.
"It has been made abundantly clear that the ethanol industry has no interest in a year-round E15 compromise that would rein in the volatile regulatory costs of the Renewable Fuel Standard."
The biofuels amendments come just one day after President Donald Trump issued an executive order addressing dwindling refining capacity in the U.S.
"Certain members of Congress are advancing proposals that would diminish
America's ability to produce gasoline, diesel and jet fuel," the group said.
"We oppose efforts to include E15 in the farm bill and ask members of Congress to take a stand for the independent refinery workers, consumers, and communities they represent."
The amendments not only would address the E15 issue but would include a 75% cut in RFS obligations for small refiners starting in 2028.
One amendment also would bar the EPA from shifting RFS obligations to other parties, which would be in stark contrast to the EPA's recently finalized RFS rule that requires 70% of gallons waived for small refiners to other obligated parties.
Biofuels credits deemed as wrongly retired from 2016 to 2018 also would be retroactively returned to refiners.
Small refineries in threat of closure would be granted the ability to petition the EPA for relief annually but would cap the volume at 150 million gallons annually.
"This landmark, bipartisan solution for year-round E15 would unlock new options at the pump, saving consumers up to 30 cents per gallon and expanding markets for America's farmers," Growth Energy CEO Emily Skor said in a statement.
"With the summer driving season approaching fast, this amendment represents a critical opportunity to unleash investment in rural communities and shield U.S. consumers from volatility with lower-cost, American-made fuel. We urge the House to support this amendment and send it to the president, who has promised to sign year-round E15 into law without delay."
Renewable Fuels Association President and CEO Geoff Cooper said in a statement on Wednesday the E15 legislative fix is a long time in coming, and getting closer to the finish line.
"This amendment would permanently allow for year-round, nationwide sales of lower-cost E15 at a time when American consumers are facing high gas prices and our nation's farmers are in desperate need of new market opportunities," Cooper said.
"The amendment strikes the right balance for the many stakeholders who came to the table and engaged in good faith with the House council over the past several months, and we believe it is broadly supportable by agriculture, oil refining, biofuels, and fuel retail interests. We appreciate the council's diligent efforts to find compromise and a path forward for the legislation."
In January, federal lawmakers pulled year-round E15 from a funding bill and instead formed the so-called E15 Rural Domestic Energy Council to include members of Congress to study the issue and introduce legislation in February.
Separately, Rep. Eric Sorensen, D-Ill., submitted his own amendment to the House farm bill that would allow year-round E15. He submitted a similar amendment in committee, but it was considered outside the House Agriculture Committee's jurisdiction.
Also reflecting some opposition to biofuels, Rep. Chip Roy, R-Texas, submitted an amendment to the farm bill for consideration that would repeal the RFS.
Read more on DTN:
"E15 Push Hits Critical Stage," https://www.dtnpf.com/….
Todd Neeley can be reached at todd.neeley@dtn.com
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