The agriculture and ethanol industries responded favorably to the EPA’s decision to approve the voluntary use of E15 in cars manufactured in 2007 or later. The increase in ethanol blended into gasoline fuels could help the ethanol industry have a home for another 4-5 billion gallons per year.
Last year, Growth Energy filed the E15 Waiver and after several delays, the ethanol industry is finally able to celebrate a small victory. “Today’s approval of E15 for newer vehicles is the first crack in the blend wall in more than 30 years, and proves what was laid out in Growth Energy’s Green Jobs Waiver – that E15 is a good fuel for American motorists. And while this is an important first step, there are many more steps we can take toward strengthening our national security by reducing our dependence on foreign oil, creating jobs here in the United States and improving our environment,” Tom Buis, CEO of Growth Energy, said.
The American Farm Bureau Federation President Bob Stallman applauded the EPA as well. “Ethanol is a clean-burning, home-grown renewable fuel. Increasing the percentage of ethanol in the domestic gasoline supply moves our nation one step closer to greater energy independence. It also promotes job creation in rural America.”
Although the National Corn Growers Association (NCGA) was also happy that the EPA took a step in the right direction, they called for EPA to make a quick next step in the approval of E15 in model cars and light duty trucks from 2001-2006. The Department of Energy is still undergoing testing in these vehicles.
“We’re disappointed in the very limited scope of this approval, but pleased the EPA has finally taken action to partially approve the waiver request to allow higher blends of ethanol in some motor vehicles,” said NCGA President Bart Schott, a grower in Kulm, N.D. “We believe this bifurcation of the approval process, and the labels that are expected to be placed on higher-blend fuel pumps, can lead to general consumer confusion and therefore act counter to the original intent.”
The Renewable Fuels Association was a little more harsh than NCGA in EPA’s limited approval of E15. “EPA’s scientifically unjustified bifurcation of the U.S. car market will do little to move the needle and expand ethanol use today,” said RFA President and CEO Bob Dinneen. “Limiting E15 use to 2007 and newer vehicles only creates confusion for retailers and consumers alike. America’s ethanol producers are hitting an artificial blend wall today. The goals of Congress to reduce our addiction to oil captured in the Renewable Fuels Standard cannot be met with this decision.”
While many organizations are supportive of the move, not all are happy. The National Cattleman’s Beef Association criticized the decision or adding another ‘financial burden to all corn users’. “Corn ethanol production is significant to the cattle industry because of its impact on feed grain prices. NCBA’s members strongly oppose mandated production and increasing government intervention that artificially inflates the cost of feed ingredients. This waiver is a step closer to more government mandates.”