Thursday, October 14, 2010

EPA approval of E15 fuel doesn't mean it will be at pumps soon

The Obama administration's approval of limited use of a 15 percent ethanol blend in gasoline doesn't mean drivers should expect to see E15 fuel at the pumps anytime soon. "Biofuel industry advocates said the decision would create new inroads for an industry that is producing more corn-based fuel than can be used," Allison Winter of Environment & Energy Daily reports. "But it remains unclear when or where the fuel would be offered." Environmental Protection Agency Assistant Administrator Gina McCarthy said the agency is giving gas retailers the option of selling E15 but not mandating it.

"We followed the law and followed the science, and we have done the testing that makes us very confident that this fuel is safe for newer vehicles," McCarthy said. "There will be many decisions that follow, but EPA is not the entity that will roll those out, and use of these fuels will not be compelled." Without a strong demand for E15 fuel, fewer stations may provide it, Winter writes. "The Petroleum Marketers Association of America has asked EPA and Congress to ensure that the fuel would not harm tanks, pipes and glue -- all of which are approved for E10," Winter writes.

"A representative from the petroleum-retail trade group said there may be a 'chicken and egg' problem with the fuel -- retailers may not bother to carry it unless there is a push from consumers. But consumers may not be interested in using it unless it is commonly adopted by retailers," Winters writes. Critics of the decision were quick to note permitting E15 is a political gift top Midwestern states in advance of the upcoming elections. "EPA's unwise and premature decision to allow the sale of gasoline with higher levels of ethanol may be good politics in Corn Belt states on the eve of the midterm elections, but it is bad news for every American who owns a car, truck, motorcycle, boat, snowmobile, lawnmower, chainsaw or anything else powered by gasoline," Gregory Scott, executive vice president of the National Petrochemical & Refiners Association, told Winters. (Read more, subscription required)

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