HR 1346: To amend the Clean Air Act with respect to the ethanol waiver for Reid Vapor Pressure under that Act, and for other purposes.

HR 1346 in plain English: This bill amends the Clean Air Act to allow gasoline blended with up to 15% ethanol (E15) to be sold year-round by extending the same Reid Vapor Pressure waiver currently available to 10% ethanol blends (E10), which had previously restricted E15 sales during summer months. It also nullifies existing state exclusions from the waiver, though states may seek new exclusions after the bill's enactment, and directs the EPA to return certain compliance credits to small refineries.

Stated purpose

The bill aims to allow gasoline blended with 10% to 15% ethanol (E15) to be sold year-round nationwide by extending an existing air-quality waiver, and to adjust renewable fuel compliance requirements for small oil refineries.

Key points

• Extends the Reid Vapor Pressure waiver to E15 gasoline, allowing it to be sold year-round, not just outside summer months
• Nullifies existing state exclusions from the waiver, but allows states to apply for new exclusions after enactment
• Requires the EPA to return renewable fuel compliance credits to small refineries under certain conditions

Arguments supporters make

• Letting E15 sell year-round gives consumers more choices at the pump and could lower fuel costs since E15 is often cheaper than regular gasoline.
• Expanding ethanol use supports American corn farmers and rural economies that depend on the ethanol industry.
• Reducing paperwork burdens and compliance costs for small refineries helps smaller businesses compete against larger oil companies.

Arguments opponents make

• Critics argue that E15 can increase smog-forming emissions during hot summer months, which is precisely why the original summer restrictions existed to protect air quality.
• Some states had already obtained exclusions from the waiver to protect their local air quality, and this bill wipes out those existing state exclusions, overriding decisions states made for their own residents.
• Cutting small refinery renewable fuel obligations by 75% could undermine the overall goals of the Renewable Fuel Standard, reducing the total amount of renewable fuel blended into the nation's fuel supply.

Tradeoffs

Allowing year-round E15 sales may benefit fuel retailers, consumers, and ethanol producers but could come at the cost of higher ground-level ozone pollution in some areas during summer; reducing compliance obligations for small refineries eases their costs but may weaken the renewable fuel program's environmental targets.

Current status in Congress: Passed House.

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