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Energy Firms Face Scrutiny Over Ethanol Reform

Energy Firms Face Scrutiny Over Ethanol Reform


By Jamie Martin

A growing alliance of agricultural, ethanol, and fuel organizations is calling for changes to federal fuel regulations that would allow the year-round sale of E15 gasoline. The fuel contains 15% ethanol and is widely viewed as a cost-effective option for drivers.

Supporters of the reform say the policy would benefit corn farmers, fuel producers, and consumers alike. However, progress has slowed due to resistance from a limited number of large energy companies.

“There is a tiny minority of major energy corporations – like Delek U.S. Inc., Cenovus Energy, CVR Energy, HF Sinclair, Parr Pacific Holdings and Suncor Energy Inc. – that are masquerading as small refineries to get Renewable Fuel Standard exemptions they don’t need,” said Ohio farmer and NCGA President Jed Bower. “Their greedy actions are holding up legislation that would help farmers who are struggling during tough economic times.”

Under existing laws, small refineries may request exemption from blending ethanol if compliance leads to financial difficulty. Farm leaders argue that some companies using this provision are not truly struggling and continue to report strong profits.

These exemption requests, they say, undermine the original purpose of renewable fuel policies and reduce demand for ethanol. This affects corn growers who rely on biofuel markets to support their livelihoods.

The proposed legislation would also update outdated Clean Air Act rules that prevent E15 fuel sales during summer months. Industry experts believe removing this barrier would help stabilize fuel markets and promote cleaner energy use.

E15 is often priced lower than traditional gasoline, offering savings at the pump. Supporters believe expanding its availability could ease financial pressure on families during peak travel seasons.

As policymakers prepare to consider the amendment, farm and fuel groups continue urging swift action. They stress that passing the reform would strengthen rural economies, encourage renewable energy, and provide practical benefits to everyday consumers.

Photo Credit: shutterstock-dickgage


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