Coalition Pushes EPA to Reconsider Limits on Higher Ethanol Blends

(Urban Air Initiative) In a joint petition filed with the U.S. Court of Appeals, a broad alliance of ethanol, agriculture, and clean fuel organizations requested judicial review of a recent U.S. Environmental Protection Agency (EPA) rulemaking that would limit ethanol blending and restrict the use of blender pumps. The Urban Air Initiative (UAI) and National Farmers Union (NFU) are leading the alliance.

Earlier this summer, the EPA approved a rule that allows the year round sales of gasoline blends containing 15% ethanol. While the petitioners believe this is a successful step forward, they point out that the rule also included new limitations on higher ethanol blends. Specifically, the petitioners will argue that EPA misinterprets the “substantially similar” provision of the Clean Air Act to artificially limit ethanol blending. Because ethanol is a fuel additive used in EPA’s vehicle certification process, petitioners maintain that it is not subject to any volume limitations under the sub-sim law.

“It is important to note that this is not a challenge to the fundamental ruling that allows year-round use of E15,” said Farmers Union Enterprises (FUE) spokesperson and South Dakota Farmers Union (SDFU) President Doug Sombke. “Rather, it is an effort to build on E15 and allow us to provide even greater economic, heath, and energy benefits through higher blends. EPA should simply allow these fuels to compete in the market without requirements or subsidy.”

Compounding the problem, according to Urban Air Initiative (UAI) president David VanderGriend, is a provision that would effectively make ethanol blender pumps subject to crippling new regulations. The rule would treat blender-pump retailers as fuel manufacturers, subjecting them to the same regulations as refineries. Consequently, blender pumps would only be allowed to dispense E15 and E85.

Substantial investment, at both the public and private levels, are at risk. Several of the petitioners, such as Jackson Express Inc. of Nebraska and the chain of Jump Start stores have pumps would be affected.

“We have joined together to take this offensive step to protect the future of the ethanol industry. If ethanol is capped at E15 and E85, it could put small fuel retailers out of business while also limiting consumer access to cleaner fuels. This legal petition is our one chance to ask EPA to clarify its new regulations,” said VanderGriend.

In addition to the aforementioned environmental and public health advantages, there are many other reasons EPA should facilitate the use of higher level blends of ethanol. “American-grown biofuels, and higher level blends of ethanol in particular, are mutually beneficial for farmers, rural communities, automakers, the environment, and consumers,” said NFU President Roger Johnson. “Not only do they improve air quality, but they create new markets for farm products, create good jobs, stimulate economic activity in rural communities, and lower fuel prices at the pump. Taking this into consideration, EPA should be doing everything it can to support higher level blends of ethanol.”

Joining UAI, NFU, SDFU, FUE, Jackson Express, and Jump Start on the petition are the Clean Fuels Development Coalition, the Nebraska Ethanol Industry Coalition, Big River Resources, LLC, Fagen, Inc., Glacial Lakes Energy, LLC, and Little Sioux Corn Processors. READ MORE

Excerpt from Politico's Morning Energy: SUIT COMPLAINS EPA'S E15 RULE BLOCKS MID-BLEND SALES: A collection of pro-biofuels and agriculture groups has sued EPA over a provision of its E15 rule that they say has effectively prohibited the sale of ethanol blends ranging from 16 to 50 percent, below the threshold to be classified as the E85 used in flex fuel vehicles.

The groups have no problem with the primary goal of the rule to approve the sale of E15 fuel year-round. But they say language in the regulation created a catch-22 that essentially prohibits fuel retailers from selling E16-50 blends at all. "If ethanol is capped at E15 and E85, it could put small fuel retailers out of business while also limiting consumer access to cleaner fuels," said David VanderGriend, president of the Urban Air Initiative, which along with the National Farmers Union is leading the suit. The groups also filed a petition for administrative reconsideration with EPA. READ MORE