EPA takes steps toward boosting ethanol blend in auto gas tanks

The Environmental Protection Agency took a couple of big steps Tuesday toward putting more ethanol in our gas tanks:

The agency said it was clear that raising the current limit of 10 percent ethanol in gasoline to 15 percent was needed to meet federal requirements for more ethanol production.

And it said, based on research so far, that vehicles starting with the 2001 model year appeared able to use the 15 percent blend without being damaged.

The EPA stopped short of approving the higher blend, something ethanol trade groups had hoped it would do this week. But the EPA said it was inclined to do so by next June, pending the results of another test being conducted by the U.S. Department of Energy on the effects of longer-term use of the 15 percent ethanol blend.

Growth Energy, which is seeking the approval for a higher blend, said it would have preferred a final decision but was optimistic that the agency would eventually approve its request.

“It’s basically a positive answer and a very constructive way forward,” said Wesley Clark, the retired Army general who is co-chairman of Growth Energy.

The ethanol industry has struggled during the recession, particularly getting financing, and earlier this year nearly two dozen plants were idled. Its proponents say that a 15 percent ethanol standard is crucial because it would guarantee producers a bigger market, which in turn would make lenders more willing to finance them.

The higher blend also would help meet renewable-fuel standards approved by Congress. That legislation mandates that an increasing amount of ethanol be produced each year, from 9 billion gallons last year to more than 30 billion gallons in 2022.

But the idea of using higher blends has been criticized by automakers and others, who say they could damage cars, trucks and other equipment including lawnmowers. Those skeptical of the higher ethanol levels praised the EPA for waiting until additional testing is completed.

The Alliance of Automobile Manufacturers said the testing was needed to ensure that allowable ethanol blends would not harm vehicle emissions, performance and durability.

“We are pleased that EPA recognizes the importance of making decisions based on sound science,” said Dave McCurdy, chief executive officer of the auto group. “Any decisions on blends higher than E10 for the existing fleet should be postponed until adequate testing results are available.”

There are more than 7 million “flex fuel” vehicles on the road, equipped to use E85 — a blend of 85 percent ethanol and just 15 percent gasoline. But that leaves more than 200 million cars and trucks that were mostly designed to use no more than E10 — the 10 percent ethanol blends now widely available.

Ethanol makers pushing for the 15 percent ethanol blends say there has been sufficient research to show that the higher blend is safe. And the Renewable Fuels Association, another trade group, said any delay would continue to chill investment in the ethanol industry because of the uncertainty. It urged the EPA to take an intermediate step until it made its decision on E15.

“To avoid paralysis by analysis, EPA should immediately approve intermediate ethanol blends, such as E12,” Bob Dinneen, the group’s president, said in a statement.

But opponents of any higher ethanol standard expressed concern Tuesday about the logistics of moving to multiple standards, such as E10 for the 2000 model year and earlier, and E15 for 2001 models and after.

Under such a standard, 70 million older vehicles would be limited to E10. And boats and equipment such as lawnmowers probably would be excluded from any ethanol blends above E10.

That could mean gas stations would need additional pumps for different ethanol blends — or blender pumps that could dispense fuel with different ethanol levels.

The American Petroleum Institute, which represents the oil industry, said Tuesday that the EPA needed to consider all the problems that allowing different ethanol blends could cause.

The EPA said that it will take steps to address that issue with such steps as labeling fuel pumps to ensure that consumers use the proper blends for their vehicles and equipment.

Kris Kiser, executive vice president of the Outdoor Power Equipment Institute, said studies showed equipment with small engines such as chain saws and weed trimmers could have problems with blends higher than E10. Having different blends available, he said, will inevitably lead to mistakes.

“We remain deeply concerned,” he said.

source: kansacity