Ready or not, an even-numbered year is upon us, bringing a November midterm election involving every member of the House of Representatives and one-third of the U.S. Senate.
With so many ethanol policy priorities hanging in the balance, it is imperative for our supporters in Congress and the administration to take action. Some of these issues will likely be the focus of our upcoming DC Fly-In March 17-18.
Year-Round E15
EPA approved the use of E15 in most light-duty vehicles 15 years ago, yet here we are, 15 years later, still needing a legislative fix to allow retailers in all parts of the U.S. to offer the fuel permanently on a year-round basis.
After nearly passing E15 year-round at the end of 2024 (until Elon Musk stepped in to mess things up), what makes this even more exasperating is that Congress failed to keep the momentum going in 2025. A record 43-day government shutdown certainly tied their hands, but it’s unbelievable that California legislators unanimously passed a bill to allow E15 last year and Congress has yet to act.
ACE will do everything we can to make 2026 the year we finally get this legislation over the finish line, but eyes wide open, the congressional calendar shrinks considerably during election years so taking action early will be critical.
Our supporters in Congress will also grapple with how to respond to demands by the American Petroleum Institute to make legislative reforms to the small refinery exemption (SRE) provisions of the Renewable Fuel Standard (RFS) as a condition to E15 year-round.
RFS Volumes
EPA must publish final blending volumes for the 2026 and 2027 compliance years under the RFS, and decide whether to reallocate all or some of the SREs it grants. ACE urged EPA to fully reallocate waived SRE gallons because failure to do so allows obligated parties to rely on an oversupply of low-cost RINs rather than actual ethanol blending.
45Z Clarity
Last year Congress extended and strengthened the 45Z Clean Fuel Production Credit—a major win for ACE members focused on carbon intensity.
Congress restored transferability of the credit, removed indirect land use change (ILUC) penalties for 2026 and beyond, and limited feedstock eligibility to U.S., Mexico, and Canada. Nevertheless, we still need final guidance on how to claim the credit, and clarity on whether low-carbon farming practices will be eligible.
ACE’s work with farmers and ethanol companies remains critical to unlocking 45Z’s full value by enabling farmers and ethanol producers to benefit from low-carbon farming practices such as reduced tillage, 4R nutrient management, and cover crops. Data from our work will improve the GREET model and USDA’s Feedstock Carbon Intensity Calculator (FD-CIC), solving for information gaps currently preventing farmers and ethanol producers from monetizing these practices under 45Z.