(The Center Square) – A plan to allow year-round sales of gasoline with 15% ethanol stalled when a U.S. Senate committee rejected a new farm bill.
The Senate Agriculture Committee voted 10-11 against sending the bill to the full Senate. All 11 Democrats voted no. Ten Republicans voted yes, while Republican Sens. Mitch McConnell of Kentucky and Tommy Tuberville of Alabama were absent.
Committee Chairman John Boozman, R-Ark., put the meeting into an open-ended recess after the vote. That will let him call another vote later. The committee could try again when the Senate returns in September.
The measure includes a federal change that would allow E15 gasoline to be sold nationwide year-round. E15 is 15% ethanol and 85% gasoline.
Federal law limits most E15 sales during the summer due to rules meant to reduce smog. The U.S. Environmental Protection Agency has used short-term waivers to allow more sales during fuel shortages and other emergencies.
The Senate proposal would make year-round sales permanent. It would also change parts of the Renewable Fuel Standard that deal with small oil refineries.
The House passed a separate year-round E15 bill May 13. The Nationwide Consumer and Fuel Retailer Choice Act passed 218-203 and went to the Senate Environment and Public Works Committee. It has not received a Senate vote.
The House bill drew opposition from 15 free-market and energy groups before the vote. The groups said Congress should not expand access to E15 unless it also makes major changes to the Renewable Fuel Standard or ends it.
That federal program requires refiners to blend set amounts of renewable fuel into gasoline and diesel. Refiners that do not blend enough must buy credits known as Renewable Identification Numbers, or RINs.
The American Energy Association and the other groups said the cost of those credits can impact drivers by raising fuel prices. They also said the mandate hurts smaller refiners and gives special help to the ethanol industry.
“Year-round E15 is another welfare program that benefits politically connected ethanol interests at the expense of consumers and independent refiners,” American Energy Association President Jason Isaac said in May.
The groups also raised concerns about fuel use and engine safety. Ethanol has less energy per gallon than gasoline. Therefore, E15 can reduce fuel economy compared with fuel containing less ethanol.
The EPA allows E15 in cars, light trucks and passenger sport utility vehicles from model year 2001 or later. The fuel cannot be used in motorcycles, boats, snowmobiles, lawnmowers, chain saws or vehicles from model year 2000 or earlier.
Supporters say E15 often costs less per gallon and gives drivers another choice. They also say more sales would help corn farmers and rural communities.
The Congressional Budget Office estimated that the House measure would add $2.3 billion to the federal deficit from 2026 through 2036. The estimate included $2.7 billion in added direct spending and about $400 million in added tax revenue.
The E15 policy didn't cause the farm bill's failure to advance. Senators from both parties had worked on that piece of the bill.
That disagreement centered on the Supplemental Nutrition Assistance Program (SNAP).
Republicans offered to delay for one year a new rule that requires some states to pay part of their food benefit costs when their payment error rates are high. Democrats wanted a two-year delay and other changes.
Congress faces a Sept. 30 deadline to pass a new farm bill or extend the current law again.