Ethanol measure in jeopardy after CR collapse

Source: By Nick Sobczyk, Axios Pro • Posted: Thursday, December 19, 2024

Illustration of the Capitol building's dome lifting upward, letting a glowing beam of light with a question mark ascend toward the sky

Illustration: Annelise Capossela/Axios

The bipartisan spending agreement’s demise leaves an uncertain path to funding the government by Friday and likely dooms hundreds of pages of year-end policy agreements.

Why it matters: The CR agreement was carrying legislation to allow year-round sales of high ethanol fuel, as well as disaster relief and aid for farmers.

Driving the news: Republican leadership may now try to move a clean CR that extends spending through mid-March and perhaps includes disaster relief.

  • But President-elect Trump is demanding that Congress pass a debt-limit bill — which wasn’t part of initial CR negotiations — on “Biden’s watch.”

Between the lines: The original deal would have allowed year-round sales of E15, a major priority for Midwestern lawmakers and the ethanol industry.

  • E15 is blended with 10.5% to 15% ethanol, but under current law, it’s often not sold in the summer to limit smog.

What’s next: We’ll keep you posted on where things go from here as Congress barrels towards a holiday shutdown.

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