WASHINGTON, Jan 22 (Reuters) - Republican U.S. lawmakers plan to create a task force to study potential year-round sales of higher-ethanol E15 gasoline blends in the U.S., after an attempt to pass such legislation in a funding bill this week fell through.
Farm groups and Midwest ethanol advocates blasted the decision to form a task force instead of passing legislation, calling it a blow to American farmers already stung by low prices, uncertain global trade, and a lack of clarity over U.S. biofuels
policies.
Farm interests want year-round sales of E15 – which has higher ethanol content than the E10 now widely available at the pumps. The move would boost demand for corn, ethanol’s primary ingredient. Oil refiners have resisted increased biofuel blending mandates in the past, citing higher costs.
E15 sales are currently limited during summer months due to air quality regulations.
The compromise deal would establish a so-called "E-15 Rural Domestic Energy Council" to investigate topics including the sale of E15, U.S. refining capacity, biofuel blending credits and other issues and to recommend legislation by mid-February, according to a copy of the draft provision seen by Reuters.
A vote was expected as early as Thursday afternoon.
"Kicking the can down the road and creating a new council to study future legislative options would just exacerbate the uncertainty and apprehension already being felt across rural America," said Geoff Cooper, President and CEO of the Renewable Fuels Association trade group.
Democratic Representative Nikki Budzinski of Illinois also criticized the creation of the council.
"Until late last night we did have a bipartisan agreement for E15 that had industry support," she said. "They just gave up....and decided a task force is good enough."
(Reporting by Richard Cowan and Jarrett Renshaw; Writing by Richard Valdmanis; Editing by David Gregorio)
