EPA: E15 Keeps Growing in the US, but Not Fast Enough to Raise Mandates

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June 16, 2016

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(Biofuels International) Government and industry investment in new equipment will dramatically increase access to higher-ethanol blends but not fast enough to raise mandates to use the fuel next year, according to the US Environmental Protection Agency (EPA).

Grants supporting the installation of pumps and tanks able to dispense a 15% ethanol-petrol blend (E15) will help drop a significant barrier to spreading a fuel biofuel producers hope will spur a fresh wave of new market share.

But the fuel still faces legal and practical hurdles keeping regulators from assuming a looming surge in consumption, the EPA said.

Ethanol producers insist the agency has undersold the US’ ability to consume greater volumes of their fuel.

The companies say the EPA slashed penalties that would compel the fuels industry to offer it in blending mandates it has proposed refiners, importers, and other companies must meet in 2017.

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The chief US gasoline blend, a 10% ethanol blend or E10, achieved natural saturation as a replacement for the banned petroleum fuel additive MTBE and for its easy use, and the petroleum industry’s need for a US-approved oxygenate helped spur its spread.

Ease of adoption — drivers could use the mix in most existing vehicles without fretting about voiding warranties — further cemented its hold.

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The EPA has also bemoaned fuel distributors who keep credits or cost savings created by blending more ethanol instead of passing those savings on to retailers and customers to entice consumption. READ MORE

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