House passes bill to end restrictions on higher-ethanol fuels amid spiraling gas prices

The House of Representatives on Thursday passed an omnibus appropriations bill aimed at addressing spiraling fuel costs by further expanding the availability of higher-ethanol fuel blends. 

The Lower Food and Fuel Costs Act contains a number of separate agriculture provisions aimed at addressing food costs and supply chain issues.

On the energy side, it would remove summertime restrictions on the sale of a 15 percent ethanol blend, a policy similar to provisions included in an executive order signed by President Biden earlier this month. It would also appropriate $200 million to expand biofuel infrastructure and equipment. 

The measure passed the chamber 221-204 in a largely party-line vote, with five Democrats voting against it and seven Republicans in favor. 

Biden announced a waiver for the higher-ethanol blends, also known as E15, in April, shortly after the Russian invasion of Ukraine sent already-soaring gas prices further.

At the time, a White House official said the Environmental Protection Agency (EPA) “is also considering additional action to facilitate the use of E15 year-round, including continued discussions with states who have expressed interest in allowing year-round use of E15.” 

Eight midwestern states notified the EPA in May that they will make E15 available year-round, including: Iowa, Nebraska, Illinois, Kansas, Minnesota, North Dakota, South Dakota and Wisconsin. Ohio Gov. Mike DeWine (R) made a similar announcement last week. 

The package’s path forward in the Senate is unclear, but the Biden administration has previously found support for ethanol expansion among Republicans who represent ethanol-producing states, including Iowa Sens. Chuck Grassley and Joni Ernst.

Grassley has already co-sponsored the Senate version of another segment of the package to address allegations of anti-competitive behavior in the meat and livestock industries. 

The Renewable Fuels Association, the primary lobbying group for biofuels, hailed the passage in a statement Thursday. 

“E15 typically sells for 10 to 40 cents per gallon less than regular E10 gasoline today, meaning consumers are saving several dollars each time they fill up their vehicle’s tank with E15 instead of E10,” RFA President and CEO Geoff Cooper said in a statement.

“That means the typical household can save more than $300 on fuel expenses over the course of a year simply by choosing lower-carbon E15. RFA thanks Speaker Pelosi, Majority Leader Hoyer, and renewable fuel supporters from both parties for pushing this legislation over the goal line and delivering a win to hard-pressed American families dealing with inflationary pressures.”