From AAIA Capital Report
Since the Environmental Protection Agency (EPA) issued a waiver for the use of 15 percent ethanol/gasoline (E-15) blends in 2001 or newer cars and light trucks earlier this year, there has been growing concern among vehicle manufacturers (and most combustion engine manufacturers) about the safety and efficiency of the product.
Twelve automakers sent letters to Rep. James Sensenbrenner (R-Wis.), warning that the blend may damage engines and fuel supply systems in these vehicles. Several of them have stated that the use of E-15 may void the vehicle warranties.
Sensenbrenner immediately sent a letter to EPA administrator Lisa Jackson, stating that “E-15 is a product that simply does not belong in the marketplace” and went on to say that “I am writing to urge the EPA to heed these warnings and reconsider its waiver.” He asked EPA to respond by July 21.
The push for the higher blend of ethanol is partially due to the Energy Independence and Security Act that mandated the use of 36 billion gallons of ethanol or other renewable fuels in the nations fuel supply by 2022. A Final Rule issued by EPA on June 28 requires retailers to clearly label pumps dispensing fuel with ethanol content higher than 10 percent to prevent misfueling in older cars and light trucks.
The unknown consequences of using E-15 blends may best be illustrated by the fact that EPA has also issued a guidance warning gasoline retailers that higher ethanol blends may degrade tank components, which could cause leaks and groundwater contamination. The gasoline retailing industry is on record opposing the E-15 blends and asking for liability waivers which EPA did not grant.
