Republicans Vote to Dilute Gas as Prices Rise Above $4.50

A House vote has brought the country one step closer to a more affordable fuel option that might save you money at the pump, helping you keep more of what you earn. On Wednesday, House Republicans passed a bill 218-203 that would allow year-round sales of E15 ethanol fuel. The House was largely divided on the matter, and the bill's future in the Senate is uncertain, but if passed, it might offer some financial relief for drivers facing high fuel costs.

What the bill might change

If signed into law, the Nationwide Consumer and Fuel Retailer Choice Act would allow E15 ethanol fuel, a fuel blended with 15% ethanol, to be sold year-round. According to the Environmental Protection Agency (EPA), most of the gasoline sold in the country is E10 gas, though E15 is more affordable. E15 is mostly sold in the Midwest, and it's currently available at more than 3,000 gas stations.

Under current law, E15 fuel can't be sold from June 1 through September 15, because it doesn't meet the fuel vapor requirements specified by the Clean Air Act. Allowing the fuel to be sold year-round might expand its access, especially during the summer season when travel and recreation are more popular.

Temporary E15 waivers

This bill isn't the first effort to expand E15 fuel sales. On March 25, the EPA and the U.S. Department of Energy issued a temporary emergency fuel waiver allowing the sale of E15 nationwide. The waiver goes into effect on May 1, keeping E15 on the market throughout the summer months, when its sale is otherwise prohibited.

The emergency waiver would temporarily add flexibility to the fuel marketplace to offer relief from soaring fuel costs, but it wouldn't change environmental protections that are already established. However, the bill to allow E15 sales year-round would make that change permanent.

In addition to the 2025 waiver, the EPA has granted summer waivers since 2011, so expanding these waivers into a more permanent bill isn't necessarily a far stretch.

The cost savings of E15

Data on the average price of E15 is limited. A Renewable Fuels Association study found that when gas prices neared $4 nationally in 2022, E15 gas cost about $3.41 per gallon. The study estimates that drivers using E15 gas might save about $0.25 per gallon.

As E10 gas prices have reached $4.54 per gallon, a decrease of $0.25 per gallon would mean that E15 gas might save drivers about 5% to 10%.

Downside to cost savings

The cost savings that E15 offers at the pump aren't entirely straightforward. E15 contains less energy than gasoline, meaning there's less power going to a vehicle. If a vehicle uses one gallon of E10 gas to travel a certain distance, it consumes more than a gallon of E15 to travel that same distance. Drivers would need to buy more E15, but they may be able to do so at a more affordable price.

The environmental debate

Ethanol is a flammable alcohol. It's created by fermenting sugars from crops like corn. While adding more ethanol to gas to create E15 may help keep costs down, ethanol may produce more smog when it evaporates in high temperatures, raising concerns about whether widespread use of E15 during the summer is safe for the environment.

E15 use restrictions

According to the EPA, drivers are able to use E15 in most vehicles manufactured after 2001. E15 has limited compatibility, though, and it can't be used with motorcycles, boats, snowmobiles, lawnmowers, and chainsaws. It's also not compatible with vehicles that have heavy-duty engines, like school buses and delivery trucks.

Before fueling up, it's always best to refer to your owner's manual for specifications about the recommended fuel type for your vehicle. 

Accessibility limitations

E15's use isn't yet widespread, so allowing the year-round sale won't necessarily offer financial relief to drivers everywhere. E15 is available in 31 states, particularly in the Midwest. While gas stations aren't required to sell E15, some have started to sell it. Whether you'll be able to buy E15 may largely depend on your location.

Criticism of the E15 expansion

The bill might benefit farming groups, family farmers, and biofuel producers, but it faces steep opposition. Environmental organizations worry that increasing ethanol demand might disrupt crop allocations and potentially harm the environment. Republicans from oil-producing states have expressed concern about how the bill might affect small refineries.

Bottom line

The bill has passed the House, but it still needs a 60% majority vote in the Senate before Trump is able to sign it into law. Its passage isn't guaranteed, since there's been lots of opposition and debate surrounding the idea. Even if the bill doesn't pass, the temporary waiver still allows the sale of E15 this summer, so consumers who are able to access the fuel may be able to save on fuel costs.

Coping with the high gas costs isn't easy, but finding ways to increase your income may help you navigate the coming months and even get ahead financially.

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Author Details

Paige Cerulli

Paige Cerulli is a writer for FinanceBuzz with more than 15 years of experience covering personal finance. She focuses on trending financial topics and helps readers make sense of everyday money decisions to more timely topics like tax refunds and how to make the most of that extra cash.