Efforts to Expand Ethanol Market Suffer Legislative Setback

(Randy Holt/Associated Press)

Efforts to expand the market for corn-based ethanol likely will be significantly delayed after an attempt to attach a key provision to must-pass legislation failed, according to a major trade group.

Lawmakers had been working to pass a measure allowing year-round sales of higher-ethanol E15 gasoline as part of the latest government funding package. But the amendment was scrapped on Jan. 22, in a blow to ethanol producers and large refineries.

“We’ve known for several months now that the appropriations bill would be the best way to get this done in the near term,” Geoff Cooper, president of the Renewable Fuels Association, said in an interview.

The efforts come as both the oil and agriculture sectors have been anxiously awaiting the Trump administration’s finalization of biofuel-blending quotas, which have been delayed, leaving uncertainty over how companies will be impacted. 

Lawmakers on Jan. 22 struck a deal to establish a council focusing on E-15. Cooper said it’s not likely the group will come up with a solution before the council’s deadline of Feb. 15 to submit a proposal to Congress. The RFA will continue to look for a way to pass E15 expansion, which could include tacking it onto other legislation such as the farm bill, he said.

Ethanol producers are more than disappointed by Congress not moving E15 this week. @EthanolRFA CEO Geoff Cooper talks about the frustration and how the industry will move forward at the National Ethanol Conference. https://t.co/I9nh4rnRjN — Energy.AgWired (@EnergyAgNews) January 23, 2026

The failed amendment would also have scaled back exemptions to blending biofuels mandates for small refineries. Federal law currently allows waivers if the refineries demonstrate “disproportionate economic hardship.” Critics of the program say it lets some large companies receive waivers for their small facilities despite not needing them to stay financially viable.