WASHINGTON -- Warning that the Environmental Protection Agency (EPA) could be putting consumers at risk, the American Petroleum Institute (API) is criticizing the EPA's decision to approve higher levels of ethanol in gasoline (E15) before testing is complete.
The EPA announced yesterday that it has approved the first applications for registration of ethanol for use in making gasoline that contains up to 15% ethanol, known as E15.
For more than 30 years, ethanol has been blended into gasoline, but the law limited it to 10% by volume for use in gasoline-fueled vehicles. "Registration of ethanol to make E15 is a significant step toward its production, sale and use in model year 2001 and newer gasoline-fueled cars and light trucks," the agency said.
To enable widespread use of E15, the Obama Administration has set a goal to help fueling station owners install 10,000 blender pumps over the next five years, the EPA said. In addition, both through the Recovery Act and the 2008 Farm Bill, the U.S. Department of Energy (DOE) and U.S. Department of Agriculture have provided grants, loans and loan guarantees to spur American ingenuity on the next generation of biofuels.
This action follows an extensive technical review required by law, said the EPA. Registration is a prerequisite to introducing E15 into the marketplace. Before it can be sold, manufactures must first take additional measures to help ensure retail stations and other gasoline distributors understand and implement labeling rules and other E15-related requirements.
The EPA is not requiring the use or sale of E15.
After extensive vehicle testing by the DOE and other organizations, the EPA issued two partial waivers raising the allowable ethanol volume to 15% for use in model year 2001 and newer cars and light trucks.
E15 is not permitted for use in motor vehicles built prior to 2001 model year and in off-road vehicles and equipment such as boats and lawn and garden equipment. Gas pumps dispensing E15 will be clearly labeled so consumers can make the right choice.
Click here for more information from the EPA.
"EPA is choosing to ignore the red flags in its headlong rush to allow more ethanol in gasoline, putting consumers and their vehicles at risk," said API director of downstream operations Bob Greco. "Testing needs to be completed before this new fuel mixture is introduced into Americans' gas tanks."
Greco said the EPA decision comes before the completion of thorough testing by the automobile and oil industries to ensure the safety and performance of the new fuel for vehicles. He said that testing results so far have revealed problems with E15 and that engine damage from its use may not be covered under vehicle manufacturer warranties.
"API supports a realistic and workable Renewable Fuel Standard and the responsible introduction of increased biofuels in a manner that protects consumers and the investments they've made in their vehicles," Greco said. "However, we cannot rush to allow more ethanol before we know the consequences."
Greco added that the U.S. oil and natural gas industry is the largest consumer of ethanol and other biofuels and remains committed to the use of renewable fuels in our energy mix.
In response to the EPA's actions, the Society of Independent Gasoline Marketers of America (SIGMA) advised its members that E15 is not permitted for use in motor vehicles built prior to model year 2001 and in off-road vehicles and equipment such as boats and lawn and garden equipment. Retailers are required to affix a label on gasoline pumps dispensing E15 warning customers that E15 is only permitted in model year 2001 and newer vehicles. Under current law, retailers may be held liable for customer misfueling. Retailers who sell E15 must have infrastructure (tanks, dispensers, etc.) that has been certified as compatible with E15.
And the Petroleum Marketers Association of America (PMAA) recommended that independent petroleum marketing companies wanting to offer E15 should first obtain legal and regulatory expertise to assure compliance with the many applicable state and federal regulations.
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