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(Reuters) – The U.S. House passed legislation on Wednesday that would allow nationwide year‑round sales of gasoline containing 15% ethanol, handing a major win to biofuel producers and farm groups while raising concerns among refiners about higher compliance costs.
The H.R. 1346 bill, or the Nationwide Consumer and Fuel Retailer Choice Act, approved by a vote of 218 to 203, would permit fuel retailers to offer E15 year‑round, removing seasonal restrictions linked to smog concerns.
The legislation would need to pass the Senate, where it needs 60% of votes, and get a signature from President Donald Trump to be enacted.
Supporters say allowing year-round E15 sales would expand biofuel demand and help lower fuel prices that have spiked since the start of the Iran war. Critics argue it risks raising costs for refiners already facing higher compliance burdens under federal biofuel mandates.
Some lawmakers have also raised fiscal concerns, with Representative James McGovern, a Massachusetts Democrat, saying the measure will add billions to U.S. debt.
The Congressional Budget Office estimates the bill would increase direct spending by $2.7 billion while raising revenues by $0.4 billion, resulting in a net deficit increase of about $2.3 billion between 2026 and 2036, based on an assumption that the legislation would take effect in August 2026.
High fuel prices due to the closure of the Strait of Hormuz, conduit for a fifth of global oil and liquefied natural gas supplies, have become a major vulnerability for President Donald Trump and his Republican party ahead of the November midterm elections.
Reporting by Siddharth Cavale in New York; Editing by Sonali Paul
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