H.R. 1346 — Nationwide Consumer and Fuel Retailer Choice Act of 2025 (Sponsored by Rep. Smith (NE) / Energy and Commerce Committee)
Executive Summary
This legislation amends the Clean Air Act to permanently allow the year-round sale of E15 (gasoline blended with 10-15% ethanol) by extending the Reid Vapor Pressure (RVP) waiver. It also significantly reforms the Renewable Fuel Standard (RFS) by terminating the general small refinery exemption petition process after 2027, replacing it with a statutory 75% reduction in compliance obligations for small refining companies (under 75,000 barrels/day). Furthermore, it creates a targeted, volume-capped exemption for 'at-risk' small refineries facing imminent closure and prohibits the EPA from reallocating exempted obligations to larger refiners, aiming to balance agricultural ethanol demand with regulatory relief for struggling small refineries.
Arguments For
- Agricultural & Biofuel Boost: Permanently allowing year-round E15 sales provides long-term market certainty for corn growers and ethanol producers, a major economic win for Midwestern agricultural states.
- Regulatory Certainty for Small Refiners: Replaces the unpredictable, highly litigated Small Refinery Exemption (SRE) waiver process with a statutory 75% compliance reduction, protecting small refiners from volatile RIN (Renewable Identification Number) prices.
- Prevents Cost-Shifting: The strict prohibition on reallocating exempted volumes ensures that larger refineries are not forced to absorb the compliance costs of exempted small refineries, preventing intra-industry warfare.
Likely Supporters
Arguments Against
- Environmental Concerns: Expanding year-round E15 sales will face opposition from environmental groups concerned about increased smog and ground-level ozone during summer months.
- Biofuel Industry Pushback on Exemptions: While the ethanol industry gets year-round E15, they may strongly oppose the automatic 75% RFS compliance reduction for small refiners, viewing it as statutory demand destruction for renewable fuels.
- Implementation & Market Distortion Risks: Capping the 'at-risk' exemption at 150 million gallons could create a race-to-the-bottom among struggling refineries, and the rigid 75,000 barrel/day threshold may create market distortions or disincentivize growth.
Likely Opponents
📋 Key Provisions
- Extends the Reid Vapor Pressure (RVP) waiver to allow year-round sales of E15 gasoline blends during the high ozone season.
- Defines a 'small refining company' as an entity whose daily average aggregate production of obligated fuels in 2025 did not exceed 75,000 barrels per day.
- Terminates the existing small refinery exemption (SRE) petition process after 2027, replacing it with an automatic 75% reduction in RFS compliance requirements for eligible small refiners starting in 2028.
- Prohibits the EPA from reallocating the exempted renewable fuel obligations of small refiners to other market participants.
- Creates a new, strictly capped exemption process for 'at-risk' qualifying small refineries facing imminent closure, permanent idling, or conversion to a renewable fuel facility.
- Directs the EPA to update E15 fuel dispenser labeling and underground storage tank compatibility regulations within 18 months.
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Verification Guide
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Defines a small refining company as producing under 75,000 barrels per day in 2025.
"not exceed 75,000 barrels per day"
Reduces compliance requirements for small refining companies by 75 percent starting in 2028.
"company under paragraph (2) by 75 per-"
Prohibits EPA from reallocating renewable fuel obligations applicable to small refining companies.
"trator may not reallocate to other persons"
Caps exempted volumes for at-risk small refineries at 150 million gallons of conventional biofuel for 2028.
"tent of 150 million gallons of"