EPA Still Mulling Ethanol Blend Percentage Hike; Increase Expected

11/23/2009

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.

1Comments
Richard Commented:
EPA's current administrator Lisa Jackson wears the same suit and rides the same chariot her predecessor did. I dont expect EPA to be coddling renewable fuel technology as much as they are still the puppets of Bush's big oil Gepettos. If they do raise the percentage, it is likely to be a little nudge than decent jump.
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