Advocacy groups pressing for higher ethanol blend

South Dakota ethanol supporters say increasing the ethanol blend in gasoline will stimulate South Dakota's economy by creating thousands of jobs, but some opponents say using more ethanol could harm the environment and stunt the growth of other renewable energy sources.

A national advocacy group and ethanol producers have submitted a waiver to the Environmental Protection Agency to increase the allowable amount of ethanol in gasoline to 15 percent. The ethanol "blend wall" is presently at 10 percent.

"It's imperative that we move to E15 because it will further reduce our dependence on foreign sources of energy and help improve the environment because it doesn't contain harmful chemicals like other gasoline additives," said Doug Sombke, president of the South Dakota Farmers Union.

The Environmental Protection Agency is taking public comment on the waiver until July 20.

Nancy Hodur, a consultant to the Windmill Group, said more than 136,000 jobs could be created nationwide if the blend wall is raised. Hodur's firm prepared the Economic Impacts of Increasing the Ethanol Blend Limit report for Growth Energy, a national ethanol advocacy group.

"The economic impact comes from an increased demand for ethanol, which requires an expansion in the ethanol industry to meet the demand," she said.

That report said the state could benefit from $690 million in construction or expansion of ethanol plants. Annually, the state could see a $419 million economic boost from operations of an expanded industry. The industry also would need about 2,600 more employees in the state to keep up with operations, Hodur said.

Several environmental groups are watching the blend wall issue.

Don Carr of the Environmental Working Group said he is concerned that increasing the blend could affect air quality and the engine life of non-flex-fuel vehicles. Price increases in corn could encourage farmers to take their land out of the environmentally friendly Conservation Reserve Program, he said. Plus, increasing the blend could hamper the development of other renewable energy sources in the state.

"This is another example of giving another handout to ethanol when we need to be looking at other options as well," Carr said.

source: argusleader