Ethanol Decision Delayed

Yesterday the Environmental Protection Agency (EPA) announced that the agency will not make a final decision about the implementation of E15 ethanol in ethanol content fuel until the middle of next year.

Previously, bio fuels industry association group Growth Energy had asked the EPA to “grant a waiver that would allow for the use of up to 15 percent ethanol in gasoline—the agency said that while not all test have been completed, the result of two tests indicate that engines in newer cars [2001 models and newer] can likely handle an ethanol blend higher than the current 10 percent limit,” according to the EPA news release.

The final decision will come after the EPA has completed all the tests they deem necessary. Meanwhile, perhaps in anticipation of what the final outcome may be, the EPA has started to craft the “labeling requirements that will be necessary if the blending limit is raised.” Further, Kate Galbraith and Matthew L. Wald are reporting on the New York Times blog Green Inc., that Wesley K. Clark, who serves as co-chairman of Growth Energy, “characterized the E.P.A.’s move on Tuesday as ‘basically a positive answer.’”

The letter EPA is sending Growth Energy is in response to the association’s March 2009 waiver request to increase the ethanol content in gasoline by five percentage points. The Clean Air Act requires the EPA to respond to the waiver request by December 1, 2009, according to the agency’s news release. EPA states that it has been working with the Department of Energy to move forward with the testing necessary to make a final determination.

While Growth Energy remains optimistic about the potential use of E15 ethanol, Green Inc. reports that the Renewable Fuels Association (RFA) is concerned the delay could hurt the struggling industry. RFA is an ethanol lobby group, and its chief executive Bob Dinneen made this statement about the decision, ‘“This delay threatens to paralyze the continued evolution of America’s ethanol industry [.]’”

Either way it is examined, the decision by the EPA is one industry groups are going to have to deal with.

To read the EPA news release click here.
To read the Green Inc report click here.

Posted: 12/02/09