The U.S. House approved the sale of year-round E15. The bill now goes to the U.S. Senate.
Year - Round E15 passed another legislative hurdle this week as the House passed a bill allowing the sale at stations that are properly equipped.
Transcript
This week, the U.S. House approved a bill to amend the Clean Air Act to allow the year-round sale of gasoline blends with 15% ethanol, commonly known as E15.
Language for year-round E15 was originally in the House version of the Farm Bill, but was pulled from that measure in order to gain enough votes for passage of the bill last month.
Nation-wide year-round sale of E15 has long been a goal of the ethanol industry. Most sales of the higher ethanol fuel occur at the 3,000 gas stations in the country that are properly equipped to dispense the blend, mostly in the Midwest. Roughly 2% of the gas stations in the U.S. can sell the blend marketed as Unleaded 88.
Roughly one third of U.S. corn production is distilled into ethanol.
Opponents of the bill believe the current structure of the RFS may create higher demand for corn and lower demand for soybeans. Fuel industry analysts believe that the additional sale of E15 could shave a few cents off the price at America’s pumps. The average price of gasoline in the U.S. has risen 63 percent since the start of the war, to over $4.35 per gallon, almost two dollars higher from before the initial offensive on Iran.
The bill now heads to the Senate, where its future is uncertain.
For Market to Market, I’m Peter Tubbs.
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