Congressional Update

On May 13, the House of Representatives passed a bill, with a vote of 218-203, to allow the year-round sale of E15 ethanol-blend fuel, a move intended to support corn farmers and provide a cheaper domestic fuel option amid high gas prices. While the vote is a victory for Midwestern lawmakers, the legislation faces an uphill battle in the Senate due to entrenched opposition from oil-state representatives. Opponents of the measure, including oil refiners, environmental groups, and fiscal hawks, cite concerns regarding rising compliance costs, potential climate harm, and a CBO analysis indicating the bill would add billions to the federal deficit over the next decade.

The EPA has proposed a two-year delay and a comprehensive rewrite of the “Tier 4” conventional pollution standards for new light-duty vehicles, pushing the initial compliance deadline from 2027 to 2029. Administrator Lee Zeldin stated that the move aims to “return EPA regulations to reality” by addressing insufficient electric vehicle adoption rates and restoring consumer choice. The agency plans to use the delay to reconsider the entire Tier 4 program, including its emission standards and phase-in schedules, while current Tier 3 standards remain in place for the interim.

The Merchants Payments Coalition and 17 other trade groups have sent a letter urging the Senate Banking Committee to reject a proposal that would raise the asset threshold for debit card swipe fee regulations from $10 billion to approximately $15 billion. This legislative change would exempt dozens of banks from current fee caps, potentially allowing them to charge an average of 62 cents per transaction, nearly triple the current regulated rate, and resulting in higher prices for consumers and small businesses. The Merchant Payments Coalition and other opponents warn that expanding these exemptions would increase inflation at the checkout counter and add to the significant financial burden swipe fees already place on American families, who currently pay an average of $1,200 more per year due to these costs.