The ethanol industry all agrees that today’s decision by the EPA to grant an E15 Waiver for 2007 or newer model cars and light duty trucks is a step in the right direction. However, most groups feel that the decision didn’t go far enough in moving the US to its renewable fuels goals of 36 billion gallons for biofuels by 2022.
Shortly following the EPA press conference, Agricultural Secretary Tom Vilsack released a statement commending the EPA for its decision. “Today’s announcement from EPA is an important step toward making America more energy independent and creating much-needed jobs in rural America. The announcement will help get existing ethanol capacity into the market.”
Vilsack continued, “Today’s action by Administrator Jackson and the EPA provides assurance to farmers, ranchers and the renewable fuels industry that the government backs the use of home grown energy in our cars and trucks. At the same time, more work is needed and we hope EPA and the Department of Energy complete an evaluation of 2001-2006 models soon.”
However, not all groups agreed with Vilsack’s enthusiasm. POET CEO Jeff Broin, whose company spearheaded the E15 Waiver, reacted by saying, “Approval of E15 in 2007 and newer vehicles is a positive first step toward opening the market for more ethanol to compete with gasoline. However, the EPA must move quickly to take the next step: approval of E15 for use in older vehicles.”
Broin continued, “The arguments being made right now against E15 are the same as those made about E10 back in the late 1980s, when I entered the ethanol industry. Seventy billion gallons later, we have proven those arguments false, just as research on E15 is proving critics wrong today. Greater market access will help give investors the needed confidence to commit to bringing cellulosic ethanol to commercial scale. Many projects, POET’s Project LIBERTY among them, are ready for commercialization but hindered by unnecessary limits on ethanol content in fuel.”
Ethanol enzyme company Genencor, a Division of Danisco echoed others’ sentiments. “We applaud the action taken today by the EPA and hope that they will quickly move to approve E15 for all vehicles. The adoption of sound, tested policies for cleaner fuels is critical to reducing our dependence on foreign oil, supporting our agricultural sector and cutting greenhouse gas emissions,” said Glenn Nedwin, Executive Vice President of Genencor.
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“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.”
A decision on the use of E15 in model year 2001 to 2006 vehicles will be made after EPA receives the results of additional DOE testing, which is expected to be completed in November. However, no waiver is being granted this year for E15 use in model year 2000 and older cars and light trucks – or in any motorcycles, heavy-duty vehicles, or non-road engines – because currently there is not testing data to support such a waiver. Since 1979, up to 10 percent ethanol or E10 has been used for all conventional cars and light trucks, and non-road vehicles.
