Commodities January 22, 2026

U.S. Lawmakers Opt for Ethanol Task Force After E15 Legislation Stalls

Creation of new council draws criticism from farm advocates and biofuel supporters amid ongoing debates over ethanol sales

By Marcus Reed
U.S. Lawmakers Opt for Ethanol Task Force After E15 Legislation Stalls

Efforts by Republican members of the U.S. Congress to pass legislation permitting year-round sales of the higher-ethanol E15 gasoline blend have stalled. Instead, lawmakers have agreed to form a dedicated task force to explore key issues surrounding E15 sales and biofuel policies, a move that has been met with disappointment by farm groups and ethanol proponents. The new council is charged with analyzing factors such as refining capacity and biofuel credit programs, with recommendations due by mid-February.

Key Points

  • Republican lawmakers have opted to form a task force to evaluate the feasibility of selling higher ethanol-content E15 gasoline throughout the entire year after legislative efforts failed.
  • Farm groups and Midwest ethanol supporters oppose the task force, viewing it as a delay detrimental to farmers facing low prices and trade uncertainties.
  • The task force will study issues related to E15 sales constraints, U.S. refinery capacity, biofuel blending credits, and is expected to recommend legislation by mid-February.

In Washington, D.C., Republican legislators have shifted their approach to advancing year-round availability of E15 gasoline, a blend containing more ethanol than the commonly used E10, following the collapse of an effort to include such provisions in a recent appropriations bill. The unsuccessful legislative push prompted the decision to establish a specialized task force, the "E-15 Rural Domestic Energy Council," which will investigate various aspects of the biofuels landscape.

Supporters of expanded E15 sales, predominantly farm organizations and advocates from the Midwest ethanol industry, strongly criticized this pivot to study and delay substantive legislative action. They view the creation of a task force as a setback for American agriculture, which has been grappling with depressed commodity prices, volatile international trade conditions, and uncertainty regarding U.S. biofuel policy direction.

The primary goal behind promoting year-round E15 sales is to increase demand for corn, the principal feedstock in ethanol production. However, oil refining groups have historically opposed enhanced biofuel blending mandates due to concerns over elevated production costs. Currently, regulations related to air quality limit E15 availability during the summer months.

The newly proposed council is tasked with examining diverse considerations including the domestic sale of E15, the capacity of U.S. refineries, and mechanisms such as biofuel blending credits. It aims to produce legislative recommendations by mid-February, as documented in a draft provision leaked ahead of an anticipated congressional vote.

Critics, such as Geoff Cooper, President and CEO of the Renewable Fuels Association, expressed that deferring decisions through the establishment of an additional council merely intensifies the apprehension already prevalent among rural communities. Democratic Representative Nikki Budzinski from Illinois echoed this sentiment, pointing out that bipartisan agreement with industry backing existed before the task force proposal was adopted, lamenting the withdrawal from direct legislative action.

Risks

  • Delay in enacting year-round E15 sales exacerbates uncertainty for farmers and the biofuel industry, potentially impacting corn demand and related agri-sectors.
  • Opposition from oil refiners to increasing biofuel blending mandates could continue to stall policy changes, affecting the energy and refining sectors.
  • The limited summer availability of E15 due to air quality regulations constrains potential market growth and complicates planning for ethanol producers and distributors.

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