U.S. Agriculture Secretary Says He's Optimistic E15 Will Receive Federal Approval
By Scott Doggett March 2, 2010
Agriculture Secretary Tom Vilscak said today that all signs point to federal approval of E15 - an ethanol-containing automotive fuel that's 15 percent ethanol and 85 percent gasoline.
"I am optimistic on E15 because there has been some indication from the Department of Energy that in their tests of newer-model vehicles with E15, it does not create any problems," Vilsack told reporters after testifying at a Senate Appropriations hearing today. "I think that's a good sign."
Facing saturation of their market at today's allowed blending level, ethanol producers have lobbied hard for U.S. EPA to allow gas stations to mix more ethanol into petroleum fuels. Regulations now restrict ethanol in gasoline to no more than 10 percent.
Biofuels advocate Growth Energy petitioned EPA last year to raise the "blend wall" for gasoline. EPA officials delayed a final decision on the fuel last December but said that if tests remained supportive, they may approve E15 for newer cars by mid-2010.
EPA and Transportation Department researchers are conducting tests on the fuel, including tests to see if it works well in vehicle engines.
The petition to raise the ethanol blending level has been opposed by automakers, equipment manufacturers, petroleum refiners and blenders, and environment and public health groups. Their fear: E15 or other higher blends could degrade older engines, gas pumps and exhaust emission control systems not specifically built to handle more than E10.
In a letter to biofuels advocates last December, EPA officials said cars from 2001 or newer can accommodate the fuel. The question has been over whether older engines can handle it, and what to do if they cannot. The American Petroleum Institute has said the agency should assess the entire vehicle fleet, predicting that the variety of fuels may be too confusing for consumers.
But Vilsack indicated today that the government may approve the fuel for newer cars, even if it does not make the grade for older engines.
The Transportation Department "wants to continue to do more testing on some of the older vehicles, so that we have a clear demarcation, a clear line drawn for consumers," Vilsack told reporters. "I hope that once we get that clear line, we can get the go-ahead, at least as far as the engines that can handle it."
Such approval would set E15 up to be one of several options available in gas stations. USDA's rural development office is developing ways the agency can assist gas stations with offering the new options, Vilsack said. He said the department has funding from the American Recovery and Reinvestment Act it can deploy to assist gas stations, as soon as EPA makes its approval.
The possibility of the new blend has received mixed reviews on Capitol Hill. Lawmakers from grain-producing states are backing the higher ethanol blend. But two prominent House Republicans have asked for a Government Accountability Office report that could potentially be used to make an argument against allowing higher ethanol blends.
Energy and Commerce Committee ranking member Joe Barton of Texas and Rep. Greg Walden of Oregon, the top Republican on the Oversight and Investigations Subcommittee, want GAO to investigate whether the federal government could be held responsible if higher ethanol blends harm engines or vehicle equipment. GAO's study is ongoing.
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