Senate weighs bill to allow year-round E15 ethanol blend sales

High U.S. gasoline prices are increasing pressure on the Senate to pass legislation allowing a greater share of corn-based ethanol into the national fuel mix. Last week the House of Representatives passed a bill that would permit the year-round sale of E15, in which conventional gasoline is mixed with a 15% blend of ethanol.

E15 is usually banned during summer months over concerns that it contributes to smog.

Republican divisions The issue divides congressional Republicans between supporters from corn-producing states and opponents representing states that either produce oil or host small refineries that can see their margins hurt by higher biofuel blends.

A majority leader told reporters he is hopeful and confident that the Senate will be able to pass an E15 bill, which he said would help lower gasoline prices.

Path forward His number two was adamant last week that he remains against the measure. An analyst at the consulting firm Capstone said it is unlikely the Senate will take up this bill as a standalone vote like the House did because there is too much opposition.

The analyst added that the bill would need to be attached to a must-pass legislative vehicle, and that the government funding bills ahead of the Sept. 30 deadline are a potential path forward.