US House Passes Bill Allowing Year-Round Sales of E15 Gasoline

Summary

• House vote follows failed attempts in 2024 and 2026 to secure year-round E15 sales
  
• Senate approval and Trump's signature are still required for bill to become law
  
• Congressional Budget Office projects $2.3 billion increase to U.S. deficit over 2026-2036
  

NEW YORK, May 14 (Reuters) - The U.S. House has passed legislation that would allow nationwide year‑round sales of gasoline containing 15% ‌ethanol, handing a major win to biofuel producers and farm groups while raising concerns among refiners about higher compliance costs.

The House on Wednesday approved the H.R. 1346 bill, opens new tab, or the Nationwide Consumer and Fuel Retailer Choice Act, by a vote of 218 to 203, which would allow fuel retailers to offer E15 year‑round, removing seasonal restrictions linked to smog concerns.

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"There were plenty of forces in Washington trying to prevent this vote from ever happening, but we held the line, demanded a vote and delivered results," Representative Zach Nunn, an Iowa Republican, said in a statement following the vote. Iowa is the top U.S. corn-producing state.

Securing ⁠year‑round E15 sales has long been a key goal for the agricultural and biofuels industry, but the measure continues to face opposition from lawmakers in refining states such as Texas and Oklahoma, and uncertainty in a deeply divided Senate. The legislation must still clear the Senate, where it needs 60% of votes, and get the signature of President Donald Trump in order to be enacted.

Previous Attempts Blocked

Wednesday’s vote follows earlier setbacks, after a similar provision was removed from a stopgap funding bill in 2024, following opposition from Elon Musk, who was acting as the Trump administration’s efficiency chief, along with certain conservative lawmakers. A in January 2026 also failed, with lawmakers instead opting to form a task force to study allowing sales of E15 all year long.

Made from corn-based fuel ethanol, the E15 gasoline blend is typically 20 to 40 cents cheaper per gallon on average than regular gasoline. Supporters say allowing constant sales of E15 would expand biofuel demand and help lower fuel prices, which have spiked ‌since the ⁠start of the Iran war. The rise in fuel prices has become a thorn in the side of Trump and his fellow Republicans ahead of the midterm elections in November.

Today's global energy turmoil, volatile fossil fuel markets, and fragmented trade is deepening fiscal stress, inflation,

“American families are asking for help, and today’s vote brings us one step closer to delivering real savings at the pump,” Emily Skor, the CEO of the biofuel trade association Growth Energy, said on Wednesday.

Farm Groups Welcome Corn Shift

Farm groups and lawmakers from agricultural states also welcomed the move, saying it could encourage a shift toward corn planting. The United States is ⁠set to harvest one of its largest soybean crops on record, while corn output is expected to fall about 6% from last year, according to the U.S. Department of Agriculture. Farmers are also facing higher costs, as disruptions to Middle East supplies of key fertilizer inputs such as sulfur and ammonia have pushed up prices.

“Passage of this bill is essential to the success ⁠of corn farmers and rural communities, particularly as our growers face their fourth year of net losses and struggle with high input costs," said Bryan Goodman, senior director of policy communications for the National Corn Growers Association.

Opponents say the measure will raise compliance costs for refiners, particularly smaller plants, as it tightens rules for exemptions from the ⁠Environmental Protection Agency's biofuel blending mandates. The American Soybean Association said the policy could reduce farm income for soybean growers.

Some lawmakers have also raised fiscal concerns. Representative James McGovern, a Massachusetts Democrat, said the bill would add billions to U.S. debt. The Congressional Budget Office estimates the bill would result in a net increase to the deficit by about $2.3 billion over the next decade.