E15 Fuel Could Be Available Year-round Thanks To New Talks

There may be some movement on the drive to bring E-15 to gas pumps year-round. At a stop in Iowa this week, President Trump signaled his support of the idea:

In the campaign, I promised to support E15 all year round. I am trusting Speaker Mike Johnson [R-La.], who’s great, and [Senate Majority] Leader John Thune [R-S.D.], who’s great … to find a deal that works.

In hot summer weather, E-15 fuel evaporates faster than regular gas, which is why its use has been restricted in some high-smog areas. The question of allowing E-15 year-round has caused debate among Republicans, with oil and gas interests on one side and farm groups on the other. President Trump has supported year-round E-15 as a way to boost demand for U.S. corn and reduce reliance on foreign energy.

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Demand could grow if the rules for the 45Z Clean Fuel tax credit become clearer. The White House Office of Management and Budget (OMB) says it’s moving ahead with updated guidance on the credit.

The 45Z credit was created in 2022 to encourage the production and sale of cleaner transportation fuels. At first, it paid about 20 cents per gallon for most fuels, and up to $1 per gallon for plants that met wage and training requirements.

The credit was later updated and extended under the One Big Beautiful Bill Act. Under the new rules, the $1-per-gallon credit is capped, but it will now run through 2029.

The OMB has announced it will release its findings in May.

In Congress, lawmakers have decided to set up a special advisory council that will determine what legislation needs to be brought forth. That council should be formed by the end of February, and there’s no clear direction on whether any of the recommendations will become law.