House Republicans spent weeks sparring internally over a bill to expand production and sales of the biofuel blend E15, pitting lawmakers from corn-producing states against conservatives concerned about expanding an expensive government mandate.
It took a bipartisan coalition of 122 Republicans, 95 Democrats and one independent to pass the bill on Wednesday, 218-203.
The measure’s fate in the Senate is uncertain given similar GOP divisions.
The bill would authorize year-round sales of E15, an ethanol-gasoline fuel blend that is primarily sold in the Midwest, where corn that is used to make ethanol is widely produced.
Federal law restricts E15 sales during the summer months to reduce smog, but the Environmental Protection Agency has routinely waived the requirement each year. Some states have permanent waivers.
“Nationwide, year-round E15 would provide immediate relief to consumers, lowering costs at the pump at different levels, but in my district, you can see [savings of] up to 52 cents per gallon at a time when families need it most,” said Nebraska GOP Rep. Adrian Smith, the bill’s lead sponsor.
Opponents called the bill a backdoor expansion of the Renewable Fuel Standard – a federal policy that requires a certain volume of renewable fuel to replace fossil fuels – that will put small refiners out of business.
Refiners or importers of gasoline or diesel fuel obtain credits to meet the standard by producing biofuel blends or purchasing credits from third parties – compliance costs that get passed down to the consumer at an estimated 30 cents per gallon.
“If higher ethanol blends were truly competitive on their own merits, they would not require federal blending mandates, compliance credit schemes, subsidies and special regulatory carveouts to survive in the marketplace,” said Wyoming GOP Rep. Harriet Hageman.
She and other opponents argue the bill will harm small refiners who cannot afford the compliance costs, as fewer would be able to obtain exemptions from the Renewable Fuel Standard under a rewrite of that process.
Lawmakers from corn-producing states, such as Iowa, Illinois, Nebraska and Minnesota, championed the bill as a way to expand fuel options for consumers while supporting farmers, increasing demand for corn by over 2 million bushels a year.
“At a time when American families are sensitive to energy prices and our farmers are navigating tight margins, we should be doing everything we can to promote stability, expand opportunity and support more domestic production,” said Rep. Darin LaHood, Illinois Republican.
Rep. Scott Perry, Pennsylvania Republican, said the demand for E15 is low even in the states that can sell it all year.
“Less than 14% of fueling stations in Iowa – in Iowa, where they grow a heck of a lot of corn – sell E15 because the consumer doesn’t want it,” he said.
Supporters argue the bill will help increase demand because it will provide more certainty in the market, encouraging broader adoption of the home-grown fuel.
“When it comes to American energy dominance, I think most South Dakotans would rather our energy future be driven by what’s going on in South Dakota corn fields rather than in Iranian oil fields,” Republican Rep. Dusty Johnson said of his constituents.
