More ethanol will be added to the nation’s gasoline supply under new requirements than vehicle engines can handle, the Environmental Protection Agency confirmed Monday.
The updated Renewable Fuel Standard increases the amount of biofuel, mainly corn ethanol, in the nation’s gasoline supply to 18.11 billion gallons in 2016, up from 16.93 billion in 2015. That has angered oil industry groups and consumers who are concerned about pushing past the “blend wall,” or the point at which a car engine is damaged by burning too much ethanol.
Janet McCabe, acting assistant administrator for the EPA’s Office of Air and Radiation, said the new standards reflects Congress’ will. The Clean Air Act required 22.5 billion gallons of biofuel to be added to the nation’s fuel supply this year, but the EPA used its waiver authority to lower the standard.
“When Congress set up the RFS it contemplated there would be an increasing percent of renewable fuels in the total fuel pool,” McCabe said. “That’s what Congress anticipated and that’s what these standards reflect.”
Pushing through the blend wall could cost consumers who will be filling up with gasoline that has more ethanol. That increased amount of ethanol could damage engines that are not able to deal with fuel containing more than 10 percent ethanol.
However, McCabe said EPA officials believe that the new standard will require more production of gasoline with 5 percent and 10 percent ethanol to match higher demand as gas prices stay low.
“What we’re seeing, and what the RFS is intended to push, is increased use of those fuels and increased availability of those fuels.”
Bob Greco, American Petroleum Institute’s downstream group director, found that argument to be lacking.
He warned fuel prices could rise if the EPA forces gasoline supplies to be more than 10 percent ethanol. He said the agency and President Obama are trying to push fuels with higher ethanol content, like E-85 and E-15, but there is strong resistance.
Few vehicles in the U.S. can use E-15. About 6 percent of vehicles on the road can use E-85, which is 85 percent ethanol and 15 percent gasoline.
“Our concern is that consumers have the right to choose the fuel they want without putting their engines at risk,” Greco said. “… The EPA is pushing fuels the consumer doesn’t want, and ultimately the marketplace is going to validate that.”
But biofuel advocates weren’t thrilled with the new standards, either.
The EPA didn’t set the standard as high as Congress wanted it to be, which would have been 22.5 billion gallons. That has angered environmental groups, corn farmers and renewable fuel advocates.
Renewable Fuel Association President Bob Dinneen said the EPA adopted the oil industry’s narrative about the blend wall being breached in the new standards. That led to the government weakening their regulation, Dinneen said.
He said the federal government is sending mixed messages about ethanol, which has been criticized as a fuel source for not providing the reductions in greenhouse gas emissions many anticipated.
Dinneen added, in a strange convergence with messages from the oil industry, that the ruling would limit consumer choice.
“This final rule directly contravenes the statute and places the potential growth for biofuels like ethanol in the hands of the oil companies,” he said. “It will have the unfortunate consequence of increasing Big Oil’s ability to thwart consumer choice at the pump without even a scintilla of fear that EPA will enforce the statute. With no consequences for Big Oil’s bad behavior, consumers will be denied greater access to the lowest cost liquid transportation fuel and number one source of octane on the planet.”
Chip Bowling, a Maryland farmer and the president of the National Corn Growers Association, said farmers are happy the EPA went above the 17.4 billion gallons of ethanol proposed earlier this year, but the new standard will harm the economy.
“The fact remains that any reduction in the statutory amount will have a negative impact on our economy, our energy security, and the environment,” he said. “It is unfortunate that Big Oil’s campaign of misinformation continues to carry weight in the court of public opinion, and in this decision.”
Bowling said the corn growers association is “re-evaluating our options” on whether to challenge the new standard.
