Corn Commentary

EPA’s Non Decision on Higher Ethanol Blends

The Environmental Protection Agency’s decision last week not to decide on a waiver that would allow up to 15 percent ethanol blends in regular gasoline leaves the ethanol industry in limbo for at least another six months. While the agency seemed to indicate that it will approve the waiver, once they “have all the necessary science to make the right decision,” they only said it would apply to year 2001 and newer vehicles. That would mean only 60 percent of American cars and trucks could use the fuel, which sounds like the making of a nightmare for fuel retailers.

According to Renewable Fuels Association (RFA) President Bob Dinneen, “Such a bifurcation would create unnecessary and burdensome requirements for fuel retailers, as well as confusion for consumers. It is unlikely that retailers would be willing to offer both an E15 blend for newer model vehicles and E10 or less for older models. This scenario could effectively result in no increase in ethanol use, despite an approval of higher level blends.”

The RFA has written to EPA administrator Lisa Jackson questioning this potential limitation and asking for their rationale. The organization also continues to request that the agency immediately allow up to 12 percent ethanol in gasoline. “That would open up a market for an additional 20 percent ethanol demand,” said Dinneen.

Dinneen says the reason EPA can approve 12 percent immediately is because gasoline is currently allowed to contain up to ten percent ethanol AND up to two percent MTBE. He asks, “If it’s okay to blend two percent MTBE on top of ten percent ethanol, what in the world difference does it make if you have 12 percent of a single oxygenate?”

Both ethanol and MTBE are classified as oxygenates that raise the octane of gasoline. The main differences between them are that MTBE is made from fossil fuel and is hazardous to the environment. Seems like a decision that would be easy for EPA to make.