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.