Fuel markets work best when rules are clear, consistent and predictable. Congress has an opportunity to provide more certainty by allowing E15 to be sold year-round nationwide while reforming the Small Refinery Exemption program under the Renewable Fuel Standard.
A balanced legislative solution would help expand consumer choice at the pump, reduce the risk of a state-by-state patchwork of summer fuel rules and ensure refinery relief is focused on truly small refining companies. API supports reforms that provide greater certainty for refiners, retailers, biofuel producers, farmers and consumers alike.
E15 is gasoline blended with 15% ethanol. While E15 can be sold during much of the year, federal summer fuel volatility requirements have created uncertainty around when and where it can be offered during the summer driving season.
That uncertainty matters because gasoline is produced and distributed through a complex supply chain. Refiners begin making summer-grade gasoline months before the driving season begins, and fuel must then move through pipelines, terminals and retail networks before reaching consumers.
Emergency federal waivers can provide short-term relief, but they often come too late to provide the certainty needed for fuel production and distribution planning. A permanent federal solution would provide a clearer, more consistent framework for the entire fuels marketplace.
The Renewable Fuel Standard allows qualifying small refineries to seek relief from certain compliance obligations. API supports preserving relief for truly small refining companies that need it.
At the same time, the program should be fair, transparent and targeted. Currently, larger companies are allowed to seek exemptions for their smaller facilities, creating uncertainty and potential competitive disadvantages for other refiners that do not receive such exemptions.
Modernizing the Small Refinery Exemption (SRE) program would help ensure relief is focused on truly small companies, not larger firms using individual facilities to qualify for exemptions. It would also reduce the risk of waived volumes being shifted onto other refiners after the fact.
What the legislation would do |
What it would not do |
|---|---|
|
Allow E15 to be sold year-round nationwide. |
It would not require retailers to sell E15. |
|
Preserve consumer access to E10. |
It would not limit existing fuel options for consumers. |
|
Provide a uniform federal approach to summer fuel requirements. |
It would not create a state-by-state fuel mandate. |
|
Update SRE eligibility from a facility-based test to a company-based test. |
It would not eliminate relief for truly small refining companies. |
|
Prevent exempted volumes from being shifted onto other refiners after 2028. |
It would not increase obligations on non-exempt refiners through reallocation. |
|
Create a clearer, more predictable RFS framework. |
It would not create a broad exemption for large refining companies. |
Year-round E15 refers to allowing E15 to be sold during the summer driving season nationwide. A federal legislative solution would give retailers the option to offer E15 year-round while preserving consumer access to E10.
No. Year-round E15 would provide legal certainty for retailers that choose to offer E15. It would not mandate E15 sales or require any retailer to offer it.
Fuel is produced and distributed through a national supply chain. A federal solution would help avoid a patchwork of state and regional requirements that can complicate fuel production, distribution and retail planning.
A permanent legislative solution would also provide more certainty than temporary emergency waivers, which may not be issued early enough to support the production and movement of summer-grade gasoline.
No. The legislation would allow retailers to offer E15 year-round, but it would not limit the availability of E10 or require consumers to use a different fuel.
Small Refinery Exemptions provide relief from certain Renewable Fuel Standard compliance obligations for qualifying small refineries. These exemptions are intended to help truly small operators facing disproportionate economic hardship.
The current framework can create uncertainty across the fuels marketplace. When exemptions are granted unpredictably or waived volumes are shifted onto other refiners after the fact, it can affect planning, compliance costs and market stability.
Reform would help ensure relief is targeted, fair and transparent.
Current law defines a small refinery based on the size of an individual facility. Reform would instead apply the threshold at the company level, helping ensure larger companies cannot qualify for small-refinery relief through individual facilities.
This approach would preserve a pathway for truly small refining companies while improving fairness across the market.
Both issues affect the same fuels marketplace. Pairing year-round E15 with SRE reform provides a balanced approach: expanding fuel choice, avoiding patchwork fuel rules, preserving targeted refinery relief and improving certainty under the RFS.
Clear, consistent rules help refiners, retailers, biofuel producers and farmers plan with greater certainty. Reducing late changes, emergency waivers and unpredictable compliance adjustments can help support a more stable and efficient fuels market.
