The Environmental Protection
Agency (EPA) is working with a Dec. 1 deadline for making a decision
on whether or not to increase the maximum blend rate for non-flex-fuel
vehicles from the current 10 percent level, to up to 15 percent, as
requested by Growth Energy. The EPA, over the past few months, has floated
various signals that it would like additional time for studies to be
completed regarding this issue, notably how a blend increase would impact
cars with over 120,000 miles.
Reports have surfaced,
which Informa has not yet been able to confirm, that EPA is mulling
the allowance of up to a 15 percent maximum blend on cars dated 2001
forward. If so, that would equate to around 80 percent of all cars on
the road today. The latest conjecture also notes that EPA could make
its decision contingent on final results from ongoing studies due to
be released next spring into early summer.
For months, many of Informa's
contacts had signaled a likely smaller boost to 12 percent. Informa
would like to stress that nothing is confirmed at this point but we
know EPA has been wrestling with various percentages and the need for
more information for quite some time. Should the latest conjecture prove
errant, and the EPA announce no increase, Growth Energy or some other
group or groups likely would resubmit their request, and that would
allow enough time for some of the pending studies to be completed for
the EPA to use in its decision making.
The bottom line is this:
An increase in the blend percentage is coming. However, the degree and
timing of any such increase is still unclear. An increase in the blend
percentage certainly bodes well for further gains in renewable fuel
production.