In an announcement noting changes to the federal Renewable Fuels Standards (RFS) program, the EPA is looking to propose lower 2014 target levels for ethanol usage that closer reflect true market conditions and overall capacity for ethanol production. Under the 2007 RFS legislation, the use of renewable fuels was mandated by gallon, with ethanol and other renewable fuels to make us 16.55 billion gallons of overall fuel use this year—and rising afterward.
Power Equipment Trade has covered the issue extensively, especially the efforts of ethanol producers to have EPA approve higher levels of ethanol blends in order to get more into the marketplace. Yet the EPA is now realizing ethanol production can’t be increased enough to meet the requirements, and development of non-corn ethanol and other alternative fuels hasn’t begun to reach a commercial production phase to help meet renewable requirements.
As a result, fuel marketers aren’t able to sell more ethanol into the fuel market without using higher-percentage ethanol blends that aren’t widely sold or made for most vehicles. This is a huge reason behind the push for E15 approval. According to the EPA announcement, going into 2014, “The ability of the market to consume ethanol in higher blends. . . is highly constrained as a result of infrastructure- and market-related factors. . .(and) does not foresee a scenario in which the the market could consume enough ethanol in blends greater than E10 to meet the volumes of total renewable fuel as required for 2014.”
There are efforts in the Republican-led U.S. House to reduce RFS requirements if not eliminate the program altogether, though politicians in both parties from major ethanol-producing states are solidly behind it. Small engine, marine and automotive interests are seeking a reduction in ethanol usage requirements due to engine damage potential from ethanol-blended gasoline, especially higher than E10.