E15 Ethanol Price Cut of 25 Cents Stalls in Senate
Lawmakers debate year-round E15 sales as gas prices stay high, with potential savings of 10 to 25 cents per gallon.
Key points
- E15 ethanol costs about one dollar less per gallon than standard gasoline at wholesale.
- A standalone House bill for year-round E15 sales is currently bottlenecked in the Senate.
- The EPA issued a temporary five-year waiver allowing summer E15 sales due to high prices.
Year-round sales of E15 ethanol could cut pump prices by 10 to 25 cents per gallon. This price advantage remains blocked in the U.S. Senate despite a standalone House bill passing.
The Environmental Protection Agency issued a five-year waiver allowing E15 use in summer. This temporary measure cites high gas prices and geopolitical factors as primary drivers.
Ethanol production drives local economic gains
Bill Pracht, CEO of East Kansas Ag Energy, reports wholesale gasoline costs about three dollars per gallon. His ethanol product sells for roughly two dollars, creating a significant margin difference.
Pracht notes that nearly all corn stays in the region instead of exporting to poultry markets. This shift keeps profits hyper-local and supports the U.S. corn industry directly.
Refinery opposition stalls legislative progress
Glenn Brunkow of the Kansas Farm Bureau blames the powerful refinery lobby for the delay. He argues that E15 is not beneficial to their specific business model.
KSHB 41 contacted Senator John Barrasso and Representative Chip Roy regarding their opposition. Neither official responded to requests for comment on the impact to their states.
Air quality regulators remain undecided
The Mid-America Regional Council has not adopted a position on year-round E15 sales. Leadership stated they are still learning about its environmental and public health impacts.
Advocates argue that local price competition will force other stations to lower their rates. They believe this dynamic will drive down costs for consumers across the board.
