Center for Advanced BioEnergy Research, University of Illinois at Urbana-Champaign

Wednesday, November 11, 2009

EPA may miss regulatory deadline on increasing ethanol blends

Feedstuffs
(11/10/2009)
Jacqui Fatka

At the beginning of March, Growth Energy and 54 ethanol manufacturers requested that the Environmental Protection Agency increase ethanol blend levels in gasoline up to 15% (E15). EPA's public comment period on the requested change closed July 20.

The statute requires EPA to make a decision no more than 270 days from when the waiver was filed in this instance, by Dec. 1. However, Reuters reported that EPA Administrator Lisa Jackson stated the agency may not have a final decision made by Dec. 1, confirming what many in the industry already suspected.

Jackson said more time is needed because EPA is still reviewing the test results on how the higher blend rate would affect engines "across the board" including not only cars and trucks but also smaller engines including snowmobiles, motor boats and lawnmowers. To date, there have been some concerns about the effect of higher blends on the smaller engines, although corn industry groups deny the claims.

Raising the blend levels increases the potential market for ethanol by approximately 20 to 50% from current levels.

Although the waiver request is up to 15%, EPA may take a more cautious approach to the blend level and approve a 12% level. Currently ethanol can be blended up to only 10%.

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