Kelly threatens to seek state E15 waiver if Congress fails to act

TOPEKA, Kan. — Gov. Laura Kelly on Tuesday pressed Congress to authorize year-round nationwide sales of E15, a gasoline blend containing 15 percent ethanol, warning she will give "strong consideration" to seeking a state-level waiver from the Environmental Protection Agency if federal lawmakers do not act. In a statement released by her office, the term-limited Democratic governor pointed to an April 1 deadline to submit such a request, framing the issue as urgent relief for Kansas corn and grain sorghum producers struggling with depressed prices and record-high supplies.

The move would place Kansas alongside eight Midwestern states — Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin — that have already received EPA approval to opt out of a federal vapor-pressure standard that effectively bars E15 from gas pumps during summer months. Kelly said she had previously declined that route, instead relying on a series of annual emergency waivers the EPA issued from 2022 through 2025, but acknowledged that year-to-year approach "continues to cause stress on our fuel retailers and agricultural industry."

The governor's statement arrives as Kansas legislators weigh their own effort to boost E15 adoption. Senate Bill 498, introduced Feb. 6, would create a 5-cent-per-gallon tax credit for fuel retailers who sell E15 or higher ethanol blends, capped at $5 million annually. The Senate Assessment and Taxation Committee recommended the bill's passage on Feb. 16, though a similar measure, House Bill 2012, stalled in the House last session after drawing opposition from fiscal conservatives in the Republican caucus. Only about 150 of the state's roughly 2,000 fueling stations currently offer E15, which typically sells for about 25 cents less per gallon than standard E10 gasoline.

Kansas ranks among the nation's top ethanol-producing states, with 12 plants generating roughly 610 million gallons annually, and the fuel represents a significant market for the state's corn and grain sorghum crops. But demand has softened: USDA projects below-average corn prices for the 2025-26 marketing year, and grain sorghum basis has weakened sharply in central Kansas as Chinese imports have fallen off. Bipartisan federal legislation — the Consumer and Fuel Retailer Choice Act, backed by both Kansas Republican Sens. Jerry Moran and Roger Marshall and Democratic U.S. Rep. Sharice Davids — would permanently authorize year-round E15 sales nationwide, but the bill has not advanced out of committee.

Found a mistake? Have a news tip or feedback to share? Contact our newsroom using the button below:

Brought to you by (click me!)