With the 2025 session drawing to a close, the biofuel industry's top legislative priority-nationwide, year-round access to E15 ethanol blends-is hanging by a thread. The bipartisan bill, championed by Sen. Deb Fischer (R-Neb.), had gained momentum last year but now faces opposition from the American Petroleum Institute (API), as well as a shrinking window for passage.

The White House recently held separate meetings with agriculture and oil industry leaders, underscoring growing friction over E15 and broader biofuel policy. API's October withdrawal of support for the Fischer bill marked a significant blow, citing "new costs on refiners" and disruptions in fuel markets.

Despite this, ethanol advocates like Growth Energy CEO Emily Skor remain hopeful. She pointed to January 2026 as the next best opportunity, suggesting E15 could be attached to a government funding bill.

There were earlier hopes to include E15 language in the National Defense Authorization Act, but that path now appears unlikely. Still, influential lawmakers such as Rep. Angie Craig (D-Minn.) and Sen. Sheldon Whitehouse (D-R.I.) have left the door open to negotiation.

Whitehouse, a leading proponent of EV and hydrogen alternatives, signaled he's open to a deal: "I'm certainly willing to consider it, but waiting for their first offer."

API's decision has left a void in the once-strong coalition supporting year-round E15. Though the group still endorses E15 access in principle, it rejected the current legislative form. Ethanol backers like RFA President Geoff Cooper are still optimistic: "They want to find a way to get it done."

Multiple Policy Decisions Still Pending

The policy environment remains unstable with several major biofuel rules awaiting federal action:

• EPA's final decision on reallocating billions of gallons of previously waived volumes under the Renewable Fuel Standard (RFS)

• 2026-27 RVO blending quotas still pending

• 45Z clean fuel tax credit awaiting guidance from the U.S. Treasury, creating uncertainty for biomass-based diesel producers

With soybeans a key feedstock for biodiesel, growers and processors are watching closely. EPA's proposal to limit foreign feedstocks and raise biomass-based diesel quotas has been a rare win for the sector.

Kurt Kovarik of Clean Fuels Alliance America warned against tying E15 negotiations to RVO finalization: "Any E15 deal should be handled on a separate track... It should not delay or distract from the RVO that needs to be finalized."

eThe industry is now shifting its focus to early 2026, hoping to revive E15 legislation while ensuring that EPA and Treasury complete critical rulemaking on time. For now, the uncertain policy landscape leaves corn, ethanol, and biodiesel producers in limbo at a time when market clarity is badly needed.