Following news that the EPA has once again not made a decision about increasing the ethanol content of gasoline sold in the nation's pumps, the ethanol industry is kind of peeved. The Renewable Fuels Association has issued a press release lashing out at the Environmental Protection Agency for "dropping the ball ... for no scientifically justified reason" on the E15 issue, saying this second punt is "a dereliction of duty."

At issue here is just how much ethanol cars on the road today can handle. Currently, most gas contains up to ten percent ethanol (E10). The RFA and others want that level bumped to 15 percent (E15). The EPA agreed to consider raising the level, but is not moving fast enough for the RFA, which wants at the very least for E12 to be immediately approved to sell more ethanol and to avoid hitting the blend wall. The EPA is considering a plan that would allow E15 to be put into vehicles from model year 2007 and newer while taking a pass on deciding what will be OK in older cars. RFA president and CEO Bob Dinneen is not happy with this, and said in the statement that:
While initial plans to approve the use of E15 for only 2001 and newer vehicles were bad, this plan borders on shameful. Confusing the market as EPA seems intent upon doing likely will lead to little if any additional ethanol being sold.
[Source: RFA]


PRESS RELEASE

RFA: EPA "Dropping the Ball" on E15

(June 17, 2010) Washington – News that the U.S. Environmental Protection Agency (EPA) is further delaying a decision on approving the use of up to 15 percent ethanol blends is as much disappointing as it is a dereliction of duty, said the Renewable Fuels Association.

Adding insult to injury, EPA is preparing to approve E15 use for only model year 2007 and newer vehicles in September while waiting to approve E15 for model year 2001 and newer vehicles later this fall. The RFA has repeatedly challenged EPA to provide any justification for such a decision, but the agency has yet to do so. This proposed trifurcation would further and unnecessarily confuse the issue.

"EPA is dropping the ball, and for no scientifically justified reason," said RFA President and CEO Bob Dinneen. "While initial plans to approve the use of E15 for only 2001 and newer vehicles were bad, this plan borders on shameful. Confusing the market as EPA seems intent upon doing likely will lead to little if any additional ethanol being sold."

Dinneen continued, "President Obama this week rallied the nation to an Apollo-like program to end our dependence on oil. By pursuing this path, EPA is failing to answer the President's charge."

Allowing up to E15 blends, up from current 10 percent limits, would mean a potential increase of 6.5 billion gallons of new ethanol demand, displacing more than 200 million additional barrels of imported oil.

Equally frustrating as the current plan is EPA's failure to consider calls to immediately approve the use of 12 percent ethanol blends. Existing oxygenate stacking rules would allow for it. Specifically, current "stacking" rules allow for the addition of up to 2 percent MTBE on top of currently allowed 10 percent ethanol blends. As ethanol and MTBE are both oxygenates, this additional 2 percent volume could be ethanol. In practice, a vehicle engine would not recognize if the oxygen content was from one fuel or two
.