FOR IMMEDIATE RELEASE
August 6, 2026
American Energy Association Leads 20+ Organization Coalition to Kill Hidden Climate Tax Buried in Senate Farm Bill
Coalition letter urges Senate Agriculture Committee leaders to strip Section 12501 from the Agricultural Act of 2026 before it locks in permanent ethanol mandates and raises fuel prices for consumers
WASHINGTON, D.C. — The American Energy Association today led a coalition of more than 20 free-market, energy, and taxpayer organizations in a letter to Senate Agriculture Committee Chairman John Boozman and Ranking Member Amy Klobuchar, urging them to strip Section 12501 from the Agricultural Act of 2026 before it reaches the floor.
Section 12501 would make the Renewable Fuel Standard permanent, authorize year-round E15 sales, and lock in a new “Small Refinery Certainty” provision that guarantees qualifying refineries a perpetual compliance reduction tied to their 2023–2025 production, with no annual petition, no hardship test, and no sunset. The coalition warns the structure also punishes growth: any small refinery that expands beyond the statutory size threshold loses its exemption entirely.
The letter argues the bill’s reallocation mechanism compounds the cost to consumers. Exempted volumes get redistributed to every other obligated refiner and importer, raising their compliance obligations and RIN purchase costs, expenses the coalition says flow directly to the pump. The letter notes the Renewable Fuel Standard compliance burden already exceeds 32 cents per gallon on obligated gasoline, a figure Section 12501 would push higher.
“After twenty years of mandates and subsidies, the ethanol industry still cannot stand on its own, and Section 12501 doubles down on that dependency instead of ending it,” said Jason Isaac, President of the American Energy Association. “This provision was written to lock in permanent benefits for a narrow set of interests while hiding the cost in every American’s gas tank. Congress should strip it from the bill.” (Draft quote — pending Jason’s review before this goes live.)
The coalition’s letter was signed by the American Energy Association, Americans For Prosperity, American Energy Alliance, AMAC, AMAC Action, American Energy Institute, American Energy Works, American Commitment, American Lands Council, Consumers’ Defense, Committee For A Constructive Tomorrow (CFACT), Competitive Enterprise Institute, Heartland Impact, Life:Powered, National Center for Energy Analytics, National Taxpayers Union, Taxpayers Protection Alliance, Texas Public Policy Foundation, The Heartland Institute, The Energy & Environment Legal Institute, and Truth in Energy & Climate.
Read the full coalition letter here
About the American Energy Association
The American Energy Association is a leading advocacy organization committed to advancing affordable, reliable, and abundant American energy. We represent the interests of energy producers, consumers, and businesses across the country.
Media Contact:
Hon. Jason Isaac
American Energy Association
512-815-2207
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