With the average price of gasoline in the U.S. reaching its highest level since the start of the Iran war, lawmakers are thinking about giving energy producers special treatment to supposedly cut costs at the pump.
As part of the negotiations over the Farm Bill, which is expected to be voted on by the House of Representatives this week, a bipartisan group of Corn Belt lawmakers is proposing a measure to authorize the sale of E15—gasoline with an ethanol content up to 15 percent—year-round. This fuel is typically not allowed to be sold in the summer months because it evaporates easily, which contributes to air pollution and smog. (The Trump administration waived requirements last month to allow for E15 to be sold this summer, citing high gas prices.)
The proposed amendment would also limit blending exemptions for small refineries under the Renewable Fuel Standard (RFS)—the federal law that requires refiners and fuel importers to ensure that a certain percentage of the transportation fuel sold in the U.S. comes from renewable fuels, the most common of which is ethanol. Compliance with the RFS is estimated to cost refineries about $70 million in both 2026 and 2027, according to the energy consulting firm Turner, Mason & Company.
“At a time when consumers are acutely sensitive to energy prices, this amendment represents a pragmatic solution that balances energy affordability, rural economic strength, and regulatory certainty,” said a coalition of agricultural and energy groups in a support letter for the measure. Additionally, its reforms to RFS exemptions “will help restore transparency and predictability for all parties subject” to that law.
It doesn’t seem like “all parties” are on board.
Last week, the National Corn Growers Association published a press release calling out a group of “oil corporations” for attempting to “derail legislation that lowers fuel prices.”
“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 the association’s president, Jed Bower. “Their greedy actions are holding up legislation that would help farmers who are struggling during tough economic times.”
Hellbound and Down 