Naureen S. Malik DOW JONES NEWSWIRES
Leading members of the U.S. House Energy and Commerce Committee raised concerns about increasing the ethanol content in gasoline without adequate testing proving it won't harm vehicle, marine and equipment engines.
The EPA is currently considering a waiver submitted last year by Growth Energy, a group of ethanol producers and supporters, to raise the ethanol content in fuel to 15% from the current limit of 10% as a necessary step to increase demand for the biofuel to meet federal renewable fuel standards. While the mandates require biofuels to make up a bigger part of transportation fuel supply through 2022, one problem is that much of the gasoline sold in the U.S. has reached the so-called blend wall, or is very close to it.
"Allowing the sale of renewable fuel in a way that damages equipment, shortens its life, or requires costly repairs will likely cause a backlash against renewable fuels" said Reps. Henry Waxman (D., Calif.), Edward Markey (D., Mass.), Joe Barton (R., Texas) and Fred Upton (R. Mich.) in the letter addressed to EPA Administrator Lisa Jackson. "It could also seriously undermine the agency's credibility in addressing fuel and engine issues in the future."
Waxman and Markey are the architects of the U.S. climate bill passed by the House last summer, but momentum to put a price on carbon, crack down on greenhouse-gas emissions and increase the use of renewable energy came to a halt as Washington focused on other priorities, such as healthcare reform and the financial overhaul bill. Efforts to push through a significantly scaled back energy bill could gain momentum after the mid-term elections in November.
The concerns raised by the four Congressmen about the safety of using a greater blend of ethanol in gasoline mimics those raised by the refining industry, engine manufacturers and some environmental groups. Refiners, auto makers and equipment makers have been worried about liability issues and whether warranties that cover damages for fuel containing up to 10% ethanol would be voided if higher levels of the corrosive biofuel are used. "Our government should not allow a giant science experiment to be conducted on the vehicles and equipment in just about every American household," said Charles Drevna, president of the National Petrochemical & Refiners Association, in a written statement.
Meanwhile, some ethanol supporters say comprehensive testing has been done and shows that engines are not harmed with ethanol content is raised to 15%. "There have been more studies completed on E15 than any other waiver in the EPA waiver process history," said Jeff Broin, chief executive officer of POET LLC, the U.S.'s largest ethanol producer. "E15 will save the consumer money and all of the tests have shown that it is fine for your automobile," said Broin, pointing out that a gallon of ethanol sells at a discount to petroleum-based gasoline.
The EPA was initially expected to make a decision on whether to grant the waiver this summer but delayed it by a few months on the need for additional testing, which is being conducted with the Department of Energy.
In the letter, the Congressmen also said that the environmental agency should have a "well-thought-out and well-executed plan for avoiding misfueling" if a partial waiver is granted to allow E15 in certain engines and not others. The EPA has said that it is considering allowing the use of E15 in newer vehicle models.
The letter included three pages of questions asking for details on tests, assurances about potential liabilities and air quality, potential misfueling problems and whether states could ban the sale of E15 if a partial waiver was granted.
Copyright © 2010 Dow Jones Newswires
