Efforts to expand the market for corn-based ethanol face a significant delay after a key provision failed to pass with must-pass legislation, according to a major trade group. This setback halts a push to increase the use of higher ethanol blends like E15.

The proposed change aimed to solidify year-round sales of E15, a 15% ethanol gasoline blend. Its failure leaves the industry without the legislative certainty it sought, stalling growth in a market valued at billions. The biofuel sector has long lobbied for stable policies to compete with traditional fuels.

Looking ahead, the ethanol industry must now pursue other avenues to boost demand, potentially through regulatory changes or new market initiatives. Investors will watch for any alternative legislative moves or shifts in federal energy policy that could revive the expansion push.