E15 Research Continues; EPA Decision on Policy Move Expected This Summer

02/11/2010

The Environmental Protection Agency (EPA) originally had been expected to rule by Dec 1, 2009, on a request to raise the allowed level of ethanol in fuels to be burned in all cars from 10 percent to 15 percent (E15). However, the EPA, which has indicated that E15 is safe for newer cars, has delayed the ruling until at least May 2010 to conduct further tests on how the blends affect engines of older cars. Proponents and opponents of the possible increase have weighed in with comments. In January, a coalition of automakers and oil companies submitted a letter to the EPA asking to further delay a decision to conduct more tests. Some sources signal that the EPA could approve E15 for newer cars later this year. 

The following is a brief summary of what Informa knows on this matter:

  • The decision is delayed until around May 2010, meaning sometime in the May-July period.
  • The reason for delay is to complete several ongoing researches on impact of E15 on various engines.
  • The EPA is reviewing various labels for gasoline pumps if the decision is made to increase the allowable blend rate percentage.
  • Several groups have written the EPA urging a go-slow approach.
  • If the EPA were to announce an increase, litigation is expected and, thus, implementation date is murky, but this is why the EPA wants more research – to back up any percentage increase decision.
  • Should the EPA deny the petition request, another request likely would be made taking into consideration the EPA's reasons for any denial.
  • While some farm-state lawmakers have indicated that they may legislate a higher percentage level should the EPA not okay the industry request, Informa does not see such legislation getting through Congress and being signed into law.

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