Groups urge House leaders to reject E15 expansion, calling it a hidden tax

By Tom Joyce
The Center Square

A coalition of conservative and free-market groups urged Congress to reject a bill that would permanently allow year-round sales of E15 gasoline nationwide.

The coalition sent a letter to House Speaker Mike Johnson and House Minority Leader Hakeem Jeffries opposing H.R. 1346, the Nationwide Consumer and Fuel Retailer Choice Act. The groups argued the bill would expand federal intervention in energy markets instead of increasing consumer choice.

The letter says the legislation would “further entrench a federally managed fuel mandate regime that has distorted energy markets, burdened consumers, harmed independent refiners, and expanded corporate welfare for politically connected ethanol interests.”

The groups also wrote that Congress “should not mistake an expansion of ethanol mandates for genuine free-market energy reform.”

The coalition targeted the federal Renewable Fuel Standard in the letter.

The groups argued the ethanol industry still relies on “federal mandates, subsidies, waivers, tax preferences, and regulatory favoritism” after two decades of government support.

The letter says the Renewable Fuel Standard acts as a hidden tax on Americans because refiners must purchase Renewable Identification Number compliance credits through what the groups called a “volatile and opaque regulatory system.”

The coalition also raised concerns about E15 fuel.

“Ethanol contains significantly less energy per gallon than conventional gasoline, resulting in lower fuel economy for consumers,” the groups wrote. “Higher ethanol blends are also incompatible with many older vehicles, boats, motorcycles, and small engines, creating risks of misfueling, equipment damage, and additional consumer costs.”

The letter argues the Renewable Fuel Standard contributes to higher grocery prices and agricultural market distortion because it diverts corn and other crops away from food and feed markets.

The coalition urged Congress to reject the bill and instead pursue reforms that would “phase down and ultimately repeal the Renewable Fuel Standard.”

Jason Isaac, president of the American Energy Association, criticized the proposal.

“Year-round E15 is another welfare program that benefits politically connected ethanol interests at the expense of consumers and independent refiners,” Isaac said in a separate statement. “Americans deserve affordable, reliable fuel options driven by market demand, not federal mandates, subsidies, and regulatory carveouts.”

Groups that signed the letter included the Competitive Enterprise Institute, The Heartland Institute, Texas Public Policy Foundation, and Conservative Partnership Institute.