Passed
218 Yea203 Nay9 Not voting1/2 required
HR-1346-119
Received in the Senate and Read twice and referred to the Committee on Environment and Public Works.
Sponsored by Adrian Smith (R-NE)
What it does
This bill would amend the Clean Air Act to allow gasoline blended with 10–15% ethanol (E15) to be sold year-round nationwide by removing Reid Vapor Pressure (RVP) restrictions that currently limit E15 sales during summer months in many areas. It would also reduce the Renewable Fuel Standard (RFS) compliance obligations for small refining companies (those producing under 75,000 barrels per day) by 75% starting in 2028, end the existing small refinery hardship exemption petition process after 2027, create a new narrower exemption for small refineries at imminent risk of closure due solely to RFS compliance costs, and restore renewable fuel credits to certain small refineries for compliance years 2016–2018.
Who benefits
Corn and ethanol producers, who would gain a larger and more consistent year-round market for their product. Gas stations and fuel retailers that want to offer E15 but currently face seasonal restrictions. Consumers in states where E15 is available who may benefit from lower fuel prices, as E15 is typically priced below regular gasoline. Small petroleum refineries (under 75,000 barrels/day) that would see their RFS compliance costs cut by 75%. Refineries that previously retired credits for 2016–2018 compliance years and would have those credits restored. Midwestern agricultural states with large corn and ethanol industries. Renewable fuel infrastructure companies that would benefit from updated labeling and underground storage tank rules making E15 distribution easier.
Who is hurt
Large petroleum refiners who would not receive the small-refinery compliance reduction and may face a competitive disadvantage. Renewable fuel producers and biofuel credit (RIN) holders, whose credits may lose value if small refinery obligations are reduced and reallocation is prohibited. Automakers and vehicle owners of older or non-flex-fuel vehicles, which may be incompatible with E15 and could face warranty or performance issues. Environmental and public health advocates who argue higher ethanol blends increase ground-level ozone and volatile organic compound emissions. Food producers and consumers who may face higher corn and food prices if more corn is diverted to ethanol production. States and localities that currently restrict summer E15 sales for air quality reasons, whose policies would be preempted. Small refineries that previously relied on the hardship exemption petition process, which would be terminated after 2027.
Supporters argue
Supporters argue that the current seasonal ban on E15 is an outdated regulatory barrier that artificially limits consumer choice and suppresses demand for American-grown corn-based ethanol. They contend that E15 has been EPA-approved for use in model year 2001 and newer vehicles — covering the vast majority of cars on the road — and that year-round availability would lower fuel prices at the pump, strengthen domestic energy production, and reduce dependence on foreign oil. They further argue that the small refinery RFS adjustments replace an opaque, litigation-prone exemption system with a transparent, predictable compliance structure that keeps independent refineries operating and preserves domestic refining capacity and jobs.
Opponents argue
Opponents argue that E15's higher volatility contributes to increased ground-level ozone formation during hot summer months, potentially worsening air quality in areas already struggling to meet EPA standards — a concern that drove the original RVP restrictions. They contend that reducing small refinery RFS obligations by 75% and prohibiting reallocation of those volumes effectively guts a significant portion of the Renewable Fuel Standard's intended biofuel demand, undermining the program's environmental goals and harming advanced biofuel producers who invested based on existing RFS volume requirements. They also argue that diverting more corn to ethanol production raises food commodity prices, imposing indirect costs on lower-income households and food manufacturers.
Constitutional context
The Clean Air Act rests on Congress's Commerce Clause authority (Art. I, §8, cl. 3), and this bill directly amends that statute. Because the bill is a direct act of Congress — not an agency rule — it does not raise major questions doctrine concerns under West Virginia v. EPA (2022) or post-Chevron scrutiny under Loper Bright v. Raimondo (2024). However, the EPA rulemaking required by Section 1(f) to modify fuel dispenser labeling and underground storage tank regulations could face independent judicial review under Loper Bright if the agency's statutory interpretation is contested.
Checks and balances
Congress directly modifies the Clean Air Act, expanding EPA's authority to permit year-round E15 sales while simultaneously constraining EPA's discretion by prohibiting reallocation of small refinery RFS obligations; courts retain authority to review the required EPA rulemaking under the post-Loper Bright independent judgment standard.
Historical precedent
EPA has issued annual summertime E15 waivers since 2019 under executive action, but those waivers have faced repeated legal challenges and lapses; this bill would codify year-round E15 access directly in statute for the first time.
Passed