Nationwide Consumer and Fuel Retailer Choice Act of 2025
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Would extend the Clean Air Act's existing Reid Vapor Pressure (volatility) waiver — currently limited to gasoline blended with 10% ethanol — to gasoline blended with up to 15% ethanol (E15), allowing E15 to be sold year-round across the country.
The bill would also restructure the Renewable Fuel Standard's small-refinery compliance program, cutting obligations for qualifying small refiners by 75% starting in 2028, restoring compliance credits for certain refineries from 2016–2018, and creating a new at-risk exemption pathway for small refineries facing imminent closure.
What this bill would do
What it would do
The bill would amend the Clean Air Act to apply the Reid Vapor Pressure (RVP) waiver — which relaxes summer ozone-season volatility limits — to gasoline blended with 10 to 15 percent ethanol, not just 10 percent. This would allow E15 fuel to be sold at retail stations nationwide year-round. The bill would also nullify RVP exclusions that states submitted after January 1, 2022, and before enactment, though states could file new exclusion notifications going forward. EPA would be required to finalize new rules on E15 dispenser labeling and underground storage tank compatibility within 18 months of enactment.
For the Renewable Fuel Standard program, the bill would define a new category of "small refining company" (daily production of 75,000 barrels or fewer in 2025), reduce their renewable fuel compliance obligations by 75 percent starting in 2028, end the existing small-refinery exemption petition process after 2027, and return compliance credits to small refineries that had retired them for 2016–2018 under specific circumstances. A separate at-risk exemption pathway would allow qualifying small refineries facing imminent closure to petition EPA annually beginning in 2028.
Key provisions
- 1Would extend the Clean Air Act's Reid Vapor Pressure waiver from E10 to gasoline blended with 10 to 15 percent ethanol, enabling year-round retail sale of E15 nationwide.
- 2Would nullify state RVP exclusions submitted after January 1, 2022, and before enactment; states may submit new exclusion notifications after enactment.
- 3Would define 'small refining company' as any entity producing 75,000 barrels or fewer per day of obligated fuels in calendar year 2025.
- 4Would reduce Renewable Fuel Standard compliance obligations for small refining companies by 75 percent beginning in calendar year 2028, with no reallocation of reduced volumes to others.
- 5Would end the small-refinery exemption petition process after 2027 and require EPA to resolve all outstanding petitions by October 1, 2028.
- 6Would direct EPA to return or credit RFS compliance credits to qualifying small refineries that retired credits for compliance years 2016, 2017, or 2018 under specified circumstances.
- 7Would require EPA to finalize rules on E15 fuel dispenser labeling and underground storage tank compatibility within 18 months of enactment.
Who would be affected
Fuel retailers and convenience stores that sell or wish to sell E15 gasoline; consumers who buy motor fuel; ethanol producers and blenders who benefit from expanded E15 markets; small petroleum refineries that must meet Renewable Fuel Standard blending obligations; states that previously sought exclusions from the E15 volatility waiver; and EPA, which must promulgate new fuel infrastructure rules.
Why it matters
Fuel retailers in states where summer E15 sales were restricted would gain year-round access to the lower-cost blended fuel, and ethanol producers would see broader demand. Small refineries — which have long sought relief from RFS blending costs — would see their compliance burden cut by three-quarters starting in 2028, with credits restored for prior years. States that had secured exclusions from the E15 waiver would lose those exclusions and would need to re-petition under the new standard.
What would change
Changes to existing law
Amends Clean Air Act, 42 U.S.C. § 7545(f)(4) (Sec. 1(a))
Adds a new provision allowing fuels meeting RVP requirements under subsection (h) — including E15 — to be introduced into commerce.
Amends Clean Air Act, 42 U.S.C. § 7545(h) (Sec. 1(a))
Extends the ethanol RVP waiver from gasoline blended with 10 percent ethanol to gasoline blended with 10 to 15 percent ethanol, enabling year-round E15 sales.
Amends Clean Air Act, 42 U.S.C. § 7545(o)(1) (Sec. 1(b))
Adds a statutory definition of 'small refining company' based on 2025 daily aggregate production not exceeding 75,000 barrels per day.
Amends Clean Air Act, 42 U.S.C. § 7545(o)(9) (Sec. 1(c)–(g))
Terminates small-refinery exemption petitions after 2027, creates a 75% compliance reduction for small refining companies, restores 2016–2018 credits, prohibits volume reallocation, and adds an at-risk refinery exemption pathway.
Amends Resource Conservation and Recovery Act of 1976 (Solid Waste Disposal Act), 42 U.S.C. § 6901 et seq. (Sec. 1(f))
Requires EPA to modify underground storage tank regulations for compatibility with E15 gasoline-ethanol blends as part of the fuel infrastructure rulemaking.
Agencies directed to act
Effective dates
- Nullification of prior state RVP exclusions and E15 waiver applicability
- EPA fuel infrastructure rulemaking on E15 labeling and storage tank rules must be finalized
- 75% compliance reduction for small refining companies and termination of exemption petitions begin
- At-risk qualifying small refinery exemption petition program begins
- EPA must resolve all outstanding small-refinery exemption petitions
Funding and costs
Congressional Budget Office estimate
CBO estimates that enacting H.R. 1346 would increase the federal deficit by $2.3 billion over the 2026–2036 period, with direct spending rising by $2.7 billion and revenues increasing by $0.4 billion.
CBO estimates that H.R. 1346 would increase direct spending (mandatory outlays) by $2.7 billion and federal revenues by $0.4 billion over the 2026–2036 period, resulting in a net increase in the deficit of $2.3 billion. The main cost driver is a reduction in demand for biomass-based diesel caused by changes to the Renewable Fuel Standard — particularly new limits on small-refinery exemptions — which would lower soybean and crop prices and increase federal agricultural support payments (such as the Agriculture Risk Coverage and Price Loss Coverage programs) by roughly $7.7 billion, partially offset by reductions in crop insurance outlays ($1.3 billion) and Commodity Credit Corporation discretionary spending ($3.8 billion). The revenue increase stems primarily from reduced claims of the clean-fuel production tax credit (as less biomass-based diesel is produced) and higher gasoline excise tax receipts from expanded E15 use. CBO found that the bill contains private-sector mandates on refineries that exceed UMRA's annual threshold (approximately $214 million in 2026), but no intergovernmental mandates.
How implementation would work
EPA would carry out this bill on two tracks. On the fuel-infrastructure track, the Administrator must publish a proposed rule, accept public comment, and finalize regulations modifying E15 dispenser labeling and underground storage tank compatibility requirements within 18 months of enactment. On the Renewable Fuel Standard track, EPA must begin applying the 75 percent compliance reduction for qualifying small refining companies in calendar year 2028, process all outstanding small-refinery exemption petitions by October 1, 2028, and handle new at-risk exemption petitions within 90 days of receipt. EPA must also post at-risk petitions publicly within 30 days of submission and may not reallocate reduced obligations to other parties. States wishing to opt out of the expanded E15 RVP waiver must submit new governor notifications after enactment.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Environment and Public Works.
Official CRS summary
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This bill amends the Clean Air Act to address the limitations on Reid Vapor Pressure (a measure of gasoline's volatility) that are placed on gasoline during the summer ozone season. Specifically, the bill applies the waiver for Reid Vapor Pressure requirements that is applicable to gasoline blended with 10% ethanol (E10) to gasoline blended with up to 15% ethanol (E15). This change allows gasoline that is blended with 10% to 15% ethanol to be sold year-round.
Currently, states may be excluded from the waiver for Reid Vapor Pressure requirements by submitting documentation supporting that the waiver would increase air pollution. The bill nullifies existing state exclusions, but states may submit documentation after enactment of the bill to be excluded going forward.
The bill also modifies the Renewable Fuel Standard Program, which requires transportation fuel sold or introduced into commerce in the United States to contain minimum volumes of renewable fuel. Under the existing program, obligated parties, such as small refineries, must satisfy the volume obligations by either blending renewable fuels into their gasoline or diesel fuel products or by acquiring credits that represent the required renewable fuel volume. The bill directs the Environmental Protection Agency to return compliance credits to small refineries under certain circumstances.
Legislative subjects
Air quality; Alternative and renewable resources; Environmental Protection; Motor fuels; Oil and gas; State and local government operations