The ethanol lobby extracted a steep price from Republicans to advance its agenda. House lawmakers passed a five-year farm bill last month, but the industry held the legislation hostage to demand year-round sales of E15 fuel—a blend of 15% ethanol and 85% gasoline—and tighter restrictions on waivers for small refiners under the Renewable Fuel Standard.

The $390 billion farm bill reauthorizes existing farm programs and $66 billion in subsidies tucked into last year's tax cut. Those subsidies were designed to ease pain for farmers who've lost access to foreign markets, particularly China, after retaliation against President Trump's tariffs. The ethanol lobby wanted additional compensation for damage caused by the trade war.

The Renewable Fuel Standard mandates increasing quantities of ethanol and other advanced biofuels be blended into the nation's fuel supply. The Trump EPA recently raised these quotas, projecting $20 billion in annual compliance costs that will be passed along to drivers at the pump.