After E15 deal fails, US Congress creates ethanol taskforce

After a failed attempt to include such legislation into a funding bill this week, Republican U.S. legislators plan to form a taskforce to examine the potential for year-round sale of?E15 gasoline blended with higher ethanol in the U.S.

Farm groups and Midwest Ethanol advocates have blasted the formation of a taskforce instead of legislation. They called it a blow for American farmers who are already hurt by low prices, uncertainty in global trade and a lack?of clarity regarding U.S. Biofuels Policies. Farm groups want E15 to be sold year-round, as it has a higher ethanol content. This would increase demand for corn as the primary ingredient in ethanol. In the past, oil refiners have refused to increase biofuel blend mandates due to higher costs.

E15 sales are currently limited during the summer months due to air quality regulations.

According to a draft of the agreement, the compromise would create a "E-15 Rural Domestic Energy Council", which would investigate issues such as the sale and refining of E15 in the United States, and biofuel blend credits, among others, and recommend legislation to Congress by mid-February.

Voting could begin as early as Thursday.

Geoff Cooper is the President and CEO of the Renewable Fuels Association, a trade group.

Nikki Budzinski, Democratic Representative from Illinois, also criticised the creation of this council.

She said, "Until late last night we had a bipartisan E15 agreement that was supported by the industry." "They gave up .... and decided that a taskforce is enough." (Reporting and writing by Richard Cowan, Jarrett Renshaw, Richard Valdmanis. Editing by David Gregorio.

(source: Reuters)