U.S. Ethanol Groups Push Lawmakers as Gas Prices Surge

Key Moments

Gas prices jumped about 20% after large-scale attacks on Iran on Feb. 28. The national average for regular gasoline is slightly above $3.70 per gallon.
E15, a blend with up to 15% ethanol, remains restricted in most states from June 1 to Sept. 15 unless federal waivers are issued.
Farm and ethanol groups warn that thousands of stations could disable E15 pumps this summer if Congress and the administration do not act.

Farmers Turn to Ethanol as Markets Tighten

All of the corn grown by Craig Brodersen in western Iowa goes to a nearby ethanol plant. As a result, his farm income ties directly to the alternative fuel market.

Brodersen said ethanol benefits both his operation and U.S. motorists. “E15 helps consumers because you’re buying it from us, not from foreign suppliers,” he said. “It’s a good product for the country.”

Regulatory Roadblock for E15

Higher gasoline prices have intensified calls for Congress to allow year-round E15 sales. Currently, the blend is limited under Clean Air Act rules unless the federal government grants waivers.

Lawmakers had aimed for a Feb. 15 agreement to secure E15 access for summer driving, but no deal was reached. A congressional task force also missed its late-February deadline to advance an E15 bill to the House.

Geoff Cooper, president of the Renewable Fuels Association, said oil industry interests blocked progress. “If Congress and the administration don’t act quickly on E15, the situation will worsen,” he said.

Potential Federal Actions and Market Impact

President Donald Trump can issue emergency waivers to allow E15 sales through summer. In January, he said he expected Republican leaders to produce an agreement addressing farmers, consumers, and refiners.

Without a policy change, Cooper said thousands of retail outlets will have to disable E15 dispensers from June 1 to Sept. 15. “That would remove the lowest-cost fuel currently available,” he added.

“Consumers are facing the highest gas prices in years and seek ways to save at the pump,” Cooper said.

Gasoline Price Spike and Demand Trends

Gasoline prices jumped about 20% after U.S. and Israeli military actions against Iran on Feb. 28. AAA reports the national average for regular gasoline is now slightly above $3.70 per gallon, up roughly $0.80 from last month. In nine Midwestern states, the average was $3.33 as of March 15.

Seasonal factors, including improving weather and spring break travel, are also pushing prices higher.

The U.S. plans to release 172 million barrels from oil reserves. Cooper noted that wider E15 use could provide faster relief. He estimated drivers could save up to 50 cents per gallon by using E15. “This is the right time to finalize year-round E15,” he said.

Price and Policy Snapshot

Item	Detail
Gas price change after Feb. 28 attacks	Jumped about 20%
National average regular gasoline	Slightly above $3.70 per gallon
Increase vs last month	About $0.80 per gallon
Average price – 9 Midwestern states (Mar 15)	$3.33 per gallon
Planned U.S. oil reserve release	172 million barrels
Potential E15 savings	Up to $0.50 per gallon

Bipartisan Frustration in Congress

Cooper highlighted a Senate Agriculture Committee hearing as a sign of momentum for E15. Multiple farm groups, including the American Farm Bureau Federation and the National Corn Growers Association, advocated for year-round E15 access.

Lawmakers from both parties expressed frustration at stalled legislation. Sen. Amy Klobuchar, a Minnesota Democrat, highlighted bipartisan support. Republican Sen. Chuck Grassley of Iowa criticized refiners for blocking progress. “Some refiners wanted to get their hands in the cookie jar,” he said.

Midwestern States Move Ahead

Eight Midwestern states, including Iowa, Illinois, Minnesota, Missouri, Nebraska, and Wisconsin, have secured approval for year-round E15 sales. They petitioned the EPA in 2024 and received authorization last year.

Industry and State Leaders Remain Optimistic

Iowa Secretary of Agriculture Mike Naig said he still expects action. “Farmers are frustrated that E15 legislation has been close to passing multiple times but never clears the goal line,” he said.

Siouxland Ethanol in Nebraska converts 33 million bushels of corn into roughly 100 million gallons of ethanol annually, said CEO Nick Bowdish. “Our plants are ready to serve consumers, but regulations limit ethanol blends to 10%,” he added.

Bowdish emphasized the issue is agricultural, not political. “Congress must pass this law. Half a million corn farmers are at stake while oil industry politics protect market share,” he said.