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JonSCKs

Posted 6/29/2026 05:53 (#11687434)
Subject: HR 1346 is the appropriate response to Iran’s attempts to close Hormuz.

I put this issue up below for comment Saturday morning.. I believe the appropriate response to Iran’s military threatening the Strait of Hormuz is to press ahead with nationwide E 15.

https://www.cbsnews.com/live-updates/us-iran-war-israel-hezbollah-strait-of-hormuz-peace-deal-talks/

What to know about the Iran war today:

Iran on Sunday launched drone and missile attacks targeting Bahrain and Kuwait in response to U.S. airstrikes that hit the Islamic Republic, and threatened a "complete halt" could come to negotiations to end the war if Washington continues its attacks.

Its time to make HR 1346 the law of the land.

https://www.congress.gov/bill/119th-congress/house-bill/1346

President Trump has supported nation wide E-15 while directing EPA administrator Lee Zeldin to increase the RVOs.. and encourages passage of nation wide E 15.

https://ethanolproducer.com/articles/trump-urges-congress-to-pass-e15-bill-requests-an-additional-111-billion-in-farm-aid

Meanwhile US gasoline stocks have fallen to the smallest levels in years..

https://www.forbes.com/sites/rrapier/2026/06/01/us-gasoline-inventories-are-falling-at-a-record-pace/

U.S. gasoline inventories aren’t at record lows, but they are falling fast.

The distinction is important. The current level of inventories does not point to an immediate shortage. But the speed of the drawdown suggests the fuel market has been burning through its cushion at an unusual rate just as the summer driving season begins.

For the week ending May 22, gasoline inventories stood at 211.6 million barrels, according to the Energy Information Administration. That level is below the five-year average and the lowest May reading since 2014, but it is not the sort of number that would normally set off alarms by itself.

The more interesting story is not the level of inventories. It is how quickly the cushion has disappeared.

Despite being significantly cheaper.. ethanol sells for as little as $1.68 per gallon.. in Kansas.. $1.82 in Illinois.

https://www.ams.usda.gov/mnreports/ams_3616.pdf

Further market penetration is restricted by outdated rules which HR 1346 addresses.. including..

https://www.turnermason.com/blog/large-impact-looms-for-small-refineries/

What H.R. 1346 Would Change

At its core, H.R. 1346 amends the Clean Air Act (CAA) and reshapes the RFS framework that flows from it on two fronts. First, it would allow E15 to be sold year-round by extending the summer 1-psi Reid Vapor Pressure (RVP) waiver to ethanol blends up to 15%. Second, it sunsets the SRE program as we know it — ending the disproportionate economic hardship (DEH) petition and replacing it with an automatic volume reduction for the smallest companies plus a narrow, capped exemption for a defined set of at-risk refineries.

What It Means for E15

If H.R. 1346 is passed into law as written, E15 would be allowed year-round, but there is no apparent change for consumers and blenders. From a practical marketplace impact, E15 has been available in the summer season since 2022 through EPA’s use of its emergency fuel waiver authority. H.R. 1346 would eliminate any claim of uncertainty due to the statutory 20-day waiver limit and may prompt marketers to build out E15 retail capacity and offerings; however, that retail buildout will take time.

On the regulatory follow-through, the bill directs the EPA — within 18 months of passage and through notice-and-comment rulemaking — to amend the E15 labeling and underground storage tank (UST) compatibility requirements. This represents a linchpin to meaningful E15 expansion as current regulations prohibit higher ethanol blends like E15 in USTs and associated leak detection equipment, retail piping, or dispensers (fuel pumps) without demonstrated compatibility from the manufacturer or via third-party. Additionally, current labeling only allows E15 in 2001 or newer and flex-fuel vehicles.

While vehicle compatibility is generally not expected to be a significant barrier, broader market adoption will still require time for infrastructure and supply chains to adapt. Retailers and terminal operators must verify equipment compatibility, implement labeling changes, and establish ethanol blending and distribution logistics to support higher E15 volumes. As a result, even if year-round E15 is authorized, meaningful expansion is likely to occur gradually rather than immediately. The rulemaking timeline matters for retailers weighing E15 build-out or conversion from E10.

There are refining and logistics wrinkles if E15 demand increases in the future. As E15 penetration increases, refiners may need to evaluate how their existing gasoline blending programs are positioned to support evolving specifications. Depending on refinery configuration and market strategy, optimization opportunities may exist around base gasoline (BOB) octane targets, RVP management, reformer severity and blendstock production. The economic and operational impacts are likely to vary significantly by refinery and market. Fungible pipelines may consider a common BOB for both E10 and E15 with a lower RVP by roughly 0.1–0.2 psi. Alternatively, with more high-octane ethanol in E15 blends, a standalone E15 BOB avoiding the octane forfeiture might be more desirable if shipper demand can justify the segregated tankage.

Domestic Ethanol penetration has plateaued without these necessary reforms.. it’s doubtful cleaner, cheaper, domestically produced ethanol from US Excess Corn production could grow.

Its time to unshackle US ethanol production at this time when world energy sources are being held hostage by bad actors in the Middle East.

We’ll find out this week.. but locally we have last years corn still in bunkers waiting for a market.. the merchandiser at our local coop.. “Are you going to pick up these piles?”

”Im not sure we have a place to go with them.. we’re waiting on a market.”

Kansas corn is bid cheaper.. than Indiana to an ethanol plant. We NEED MARKETS!!!

https://www.cardinalethanol.com/ccbids/

https://www.cardinalethanol.com/ucbids/

Locally we just got 11” of rain in the past six weeks.. our dryland is tasseling out.. we have another monster crop coming.. and we NEED MARKETS!!!

picture below taken last week.. dryland corn in south central Kansas. We got the crop.

Its time to pass legislation increasing domestic demand!

Its time to pass HR 1346 and unleash American ethanol vs being held hostage to Iran. Call your Senator..

Lets go.

https://ethanolrfa.org/file/3052/2026%20Outlook%20Updated%203-2-26%20web.pdf