While the details are still unfolding, it looks as though the EPA is going to approve the first of two decisions on whether to allow up to 15% ethanol in vehicles. EPA's initial approval is for 2007 and later model vehicles. The EPA is expected to hold a press conference tomorrow afternoon at around 1pm EST.
The approval for up to E-15 in 2007 and later vehicles could apply to 43 million vehicles or 18% of the current light-duty vehicle fleet. Meanwhile, by the end of the year, EPA plans to rule on whether to allow these higher ethanol blends in 2001-2006 vehicles, which would represent 36% of the vehicle fleet.
According to market analysts, while ethanol supporters may cheer tomorrow's decision, it's not likely to result in an immediate boost in ethanol demand, since retailers are reluctant to offer the higher level blends until product liability and potential misfueling concerns are addressed.
As it concerns this issue, the EPA is expected tomorrow to release for public comment a gasoline labeling effort that would alert consumers which vehicles are able to use which fuel blends. The pump labeling rule is not expected to be finalized until Spring 2011.
FROM BLOOMBERG:
http://www.bloomberg.com/news/2010-1...-gasoline.html
The Obama administration will grant a request from ethanol producers to permit higher concentrations of the corn-based fuel additive in gasoline for vehicles made in 2007 and later, according to a person familiar with the decision.
The Environmental Protection Agency will announce as early as today its decision allowing refiners to blend as much as 15 percent ethanol into fuel, up from the current 10 percent, said the person, who spoke on condition of anonymity before the announcement.
Ethanol producers such as Archer Daniels Midland Co. have pressed the EPA to raise the limit. Opponents, including a coalition of
oil companies, automakers and advocacy groups, say adding more ethanol may damage car engines, boost food prices and hurt the environment.
The EPA delayed its decision in December, saying it needed more time to conduct tests on the blend. A decision was again postponed in June, prompting Growth Energy, the ethanol-industry trade group seeking the 15 percent blend, to write to President Barack Obama expressing frustration with the process.
The plan to allow increased ethanol levels was reported late yesterday by the Wall Street Journal.
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