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EPA’s E15 decision takes on even greater importance

With reports that the ethanol industry has finally hit the so-called “blend wall”, the EPA’s upcoming decision on whether to allow a higher blend of ethanol in gasoline takes on even greater importance.

EPA’s ruling on the E15 waiver request is expected sometime this summer.  In its preliminary announcement late last year, the agency hinted that, if the higher blend is approved, it might only apply to newer vehicles—model year 2001 and newer.  Geoff Cooper of the Renewable Fuels Association hopes that is not the case.

“There’s absolutely no scientific evidence that E15 will only work in newer vehicles,” says Cooper, “and we’ve heard directly from retailers who have said if they can’t put E15 in every pump at their station, they’re not likely to use E15 at all.”

Cooper says with the ethanol-gasoline price spread where it’s at today, some blenders and retailers may try to figure out how to use E15–possibly labeling pumps so that consumers could pump E15 on some and E10 on others.  “But in general, I think a decision that would bifurcate the market and allow E15 only in certain vehicles and not in others really wouldn’t help move the demand needle all that much for ethanol,” Cooper says, “and the retailers have been very clear about that.”

There is some speculation that EPA may compromise on the E15 request by approving a blend between 10 and 15—perhaps an E12.