ETHANOL: Vilsack urges swift EPA approval of E15 blend

06/30/2010
Allison Winter, E&E reporter

The Obama administration should approve higher blends of ethanol in gasoline as quickly and broadly as possible, Agriculture Secretary Tom Vilsack told a Senate panel today.

Raising the amount of ethanol blended in gasoline to 15 percent from 10 percent would support the industry, meet the U.S. biofuels mandate and revitalize rural economies, Vilsack said.

"We are very, very close to hitting the E10 wall, which is why this is important," Vilsack told the Agriculture Committee. "The sooner it is made, the better, the more expansive it is made, the better."

All signs point to EPA approving the higher blends, according to Vilsack, although it may exclude older cars or certain types of automobiles.

"They have indicated that they are prepared in the fall to authorize E15; the question is, what level?" he said.

Without higher ethanol blends, the United States will struggle to meet mandates for renewable fuels, Vilsack said.

The national renewable fuel standard, which goes into effect next month, mandates that the United States produce 36 billion gallons of renewable fuel by 2022 -- with 15 billion gallons of that coming from ethanol.

Biofuels trade group Growth Energy petitioned EPA for the waiver in March 2009. The agency officially had 270 days to decide.

EPA officials had said they would have a decision this summer, after the Energy Department completes more tests on vehicle safety. But agency officials said this month that the decision would not come until fall -- inciting the ire of biofuels advocates and lawmakers from Midwestern states.

EPA said last December that cars from 2001 or newer can accommodate E15 but raised questions about whether older engines can handle the mix.

Bill would support blender pumps

In a bid to expand the market for ethanol-rich fuels, two Midwestern lawmakers introduced legislation today that would offer incentives to help increase the number of pumps that offer higher blends of ethanol.

The bill from Reps. Stephanie Herseth Sandlin (D-S.D.) and Adrian Smith (R-Neb.) would subsidize half the cost of installing blender pumps and storage tanks.

A "blender pump" is a fuel pump capable of dispensing at least three different blends of gasoline and ethanol, as selected by the pump operator. It could cost gas stations more than $100,000 to install new blender pumps, according to USDA.

There are currently about 165 stations across the country with blender pumps -- most of them in the Midwest.

USDA called for more support for blender pumps as part of the road map for renewable fuels it released last week. In rolling out that strategy, Vilsack said he plans to roll out new plans to support new blender pumps.

This article brought to you by the Indiana Renewable Energy Association.