WASHINGTON, Oct. 5, 2016 - On Monday, the Environmental
Protection Agency issued a proposed rule that would make some changes to the
Renewable Fuel Standard and add regulatory certainty for higher blends of
ethanol.
EPA says the changes in the proposed rule would define fuels
containing 16 to 83 percent ethanol as ethanol flex fuel (EFF) and no longer
treat gasoline blended with 16 to 50 percent ethanol as gasoline. This, the
agency says, would add environmentally protective fuel quality specifications
for EFF that are consistent with those already in place for gasoline.
Regulatory certainty could be provided to retailers seeking to sell higher
ethanol blends such as E30 at blender pumps.
Renewable fuel trade associations are still reviewing the
proposal, but offered cautious statements Monday afternoon. Growth Energy CEO
Emily Skor expressed skepticism about what the proposed rule might mean for the
industry’s efforts to expand the use of E15.
“If this proposed rule is finalized, this regulation would
leave E15 as the only ethanol-blended fuel that does not have Reid Vapor
Pressure (RVP) relief,” Skor said in a statement. RVP is the measure of a
fuel’s volatility and EPA regulates it to prevent increased ozone or smog from
vehicle emissions. “It is imperative that E15 be given the same volatility treatment
as regular E10 gasoline. The current RVP waiver for E10 was granted in 1990,
and it is time we update our fuel regulations to match the market realities of
the 21st century.”
Renewable Fuels Association President and CEO Bob Dinneen
concurred, saying RFA wants to make sure any changes do not hamper sales of
higher blends because of an increased emphasis on the blends in the proposed
rule.
“Our goal is to ensure the final regulations do not
unreasonably impair the ability of blenders and retailers to offer ethanol flex
fuels like E85 to consumers,” Dinneen said. “Ethanol flex fuels are the
lowest-cost, lowest-carbon, and highest octane liquid fuels on the market, and
it is imperative that these EPA regulations help – not hinder – broader
commercial introduction of these fuels.”
The ethanol industry is struggling to achieve large-scale
sales of gasoline blended with more than 10 percent ethanol, the most popular
fuel blend in the country. Unless sales of higher blends pick up, the need for
increased ethanol called for in the RFS may diminish due to changes in gasoline
demand.
Once the proposed rule is published in the Federal Register,
it will be open for public comment for 60 days.
#30
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