Industry coalition sues EPA over allowing more ethanol in fuel

A festering dispute over allowing more ethanol in gasoline has landed in court.A coalition of auto, boat and outdoor power equipment manufacturers is asking the U.S. Court of Appeals for the District of Columbia Circuit to consider whether the Environmental Protection Agency violated federal regulations meant to ensure that new fuels and fuel additives cause no engine failures or problems.

The EPA in October said it would allow up to 15 percent ethanol in 2007 model year and newer cars and light trucks after tests showed there would be no effect on engine performance or emissions. The agency also said it would wait for more tests to see whether 2001 to 2006 vehicles could be allowed to use so-called E15, a blend of gasoline and 15 percent ethanol.

The lawsuit filed Monday said the studies conducted so far, including for the newer vehicle models, were inadequate to ensure there would be no problems in using E15. The lawsuit also said the federal agency was not imposing sufficient safeguards to prevent “misfueling” of vehicles and outdoor equipment, such as lawnmowers, that haven’t been approved to use E15.

The lawsuit says the new rule sets up a situation that could void product warranties and cause engine damage.

“The issue is, how do you protect the consumer in the marketplace? That’s the beef,” said Kris Kiser, a spokesman for the Energy Products Group, a new organization formed by the Alliance of Automobile Manufacturers, the Association of International Automobile Manufacturers, the National Marine Manufacturers Association and the Outdoor Power Equipment Institute.

E10 is widely used in cars and light trucks. Specially equipped “flexfuel” vehicles also can use an 85 percent ethanol blend. But the ethanol industry says it needs the E15 blend to help meet federal requirements for use of more ethanol, which has reduced oil imports and now displaces about 5 percent of gasoline supplies.

Growth Energy, a group that represents the ethanol industry and that asked the EPA to raise the allowed ethanol content, on Monday rejected the lawsuit’s arguments that allowing up to E15 would cause problems. Tom Buis, the group’s CEO, said scientific evidence showed that E15 was safe for newer vehicles and could be used for all cars and trucks on the road today.

“We support the EPA decision to grant the waiver for 2007 and newer vehicles, and we look forward to EPA’s action on 2001 to 2006 model year vehicles,” he said.

An EPA official said in October that tests on cars, light trucks, pickups and SUVS made in 2007 and later showed that the higher ethanol wouldn’t affect emissions or engine durability. Those vehicles, numbering more than 65 million, account for 30 percent of gasoline usage. By 2014, newer cars and trucks will account for 50 percent of gasoline demand.

The EPA had little to say about the lawsuit Monday except that it would “review and respond accordingly.”

The most contentious part of the dispute is likely to be the misfueling issue, which critics of EPA’s decision said was likely because both E10 and E15 could be sold at the same locations. Labels on pumps or an education campaign wouldn’t be enough to ensure that misfueling wouldn’t happen, the lawsuit asserts.

The National Marine Manufacturers Association “regrets having to pursue litigation on this matter, but it is clear that EPA has not fulfilled its statutory obligations to ensure the safe introduction of E15,” Thom Dammrich, president of the leading trade association of boat and marine engine manufacturers, said in a statement.

The lawsuit contends that besides inadequate testing, the EPA failed to document and estimate the rate of misfueling and the environmental and economic consequences for owners and manufacturers. Congress in 2007 barred the EPA from approving a fuel with more than 10 percent ethanol without determining it would not cause any failures to meet emission standards, according to the lawsuit.

The group filing the lawsuit represents the makers of roughly 400 million vehicles, boats and products with engines, including major American and foreign automakers. The Association of International Manufacturers said Monday it supported renewable fuels, including ethanol, but was concerned that the EPA had prematurely approved E15 before critical studies were completed.

. “We are pursuing this legal action reluctantly and remain committed to continuing to work with the administration and other stakeholders to establish prospective, performance-based targets to address the challenging issues related to the introduction of new fuels into the marketplace,” said Michael Stanton, the association’s CEO.

source: kansascity