The leading US oil and gas, automotive, and outdoor power equipment trade associations are concerned that the US Environmental Protection Agency might permit ethanol's allowable motor fuels limit to rise without fully considering the consequences.
"As EPA proceeds with important decisions about ethanol and biofuel blend rates, it is imperative that those decisions be made with the end user market in mind," said American Petroleum Institute Pres. Jack N. Gerard, Alliance of Automobile Manufacturers Pres. Dave McCurdy, and Outdoor Power Equipment Institute Pres. Kris Kiser.
"These decisions will have real-world impacts, and we urge EPA to refrain from setting a premature deadline that ignores reliable, scientific data about the effects of higher ethanol blends on emissions, durability, and consumer safety," they said in a May 5 joint statement.
Growth Energy, a biofuels industry group, asked EPA in March 2009 to increase the allowable amount of ethanol in gasoline to 15% from 10%. Moving this "blend wall" would reduce US greenhouse gas emissions by 20 million tonnes/year, create 136,000 jobs, and improve US energy security, it argued.
Decision looms
EPA told the group on Dec. 1 that it expects to make a decision by midyear. API, AAM, and OPEI, however, think that's too soon.
EPA also received comments from several states, environmental organizations, and the US Coast Guard, according to Coleman Jones, biofuels implementation manager for General Motors. "They all counseled that EPA needs to wait and do a thorough job of testing, especially since Orbital Engine Co.'s tests in Australia revealed serious problems," he told OGJ in a May 7 telephone interview.
Australia's Environment Department funded the tests after the ethanol industry there increased the level to 15% without notice and motorists started having problems, he said.
Problems emerge
"Of the seven vehicles tested, Orbital found that three of their systems did not adapt well to the ethanol and two had catalyst performance deterioration," he said. US tests by the Department of Energy and the three industries found similar control system problems in 13 of 25 vehicles, Jones added.
Kiser, who also spoke with OGJ, noted that more than 500 million outdoor engines designed to run on fuels with 10% ethanol could fail at higher levels. "What's needed is robust testing and data, which are not complete," he said.
EPA is considering issuing a partial waiver, allowing an increase in the limit to 12% while tests continue. The agency also doesn't plan to address availability questions, noted Al Jessel, Chevron Corp.'s senior fuels policy advisor, who spoke to OGJ on API's behalf.
"The pressure is going to increase on the oil industry to supply E15 because of the renewable fuel standard," he said. "Refiners and marketers will be in a bind. We will not knowingly supply anyone with fuels that lead to problems."
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