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June 21, 2010

EPA may delay E15 decision–again

Published in Brownfield Ag

According to reports out of Washington today, the EPA is hinting that it may now wait until this fall to decide whether to approve a higher blend of ethanol.

The agency had been expected to decide by this month whether to increase the maximum blend from 10 to 15 percent—or possibly something in between. But on Thursday, EPA officials indicated that Energy Department testing on higher blends may not be complete until the end of September.

Growth Energy CEO Tom Buis says it’s “beyond time” for EPA to make its decision. “We think the data that we submitted in the waiver request was ample support for moving forward,” Buis says. “All our testing data on both engine durability and emissions equipment showed that there were so problems going to E15–and we certainly think it’s beyond time to make the decision.”

There has been speculation that the EPA may compromise with an E12 or E13 blend. Buis is still pushing for E15—he says it’s important to the continued growth of the ethanol industry.

Some very strong criticism from the other major ethanol lobbying group in Washington, the Renewable Fuels Association. RFA calls the reported delay “a dereliction of duty” and says EPA will be “adding insult to injury” if it only approves E15 use for newer model cars, as some are speculating could happen.

Farm state senators are also criticizing the reported delay in the E15 decision. Nebraska’s Mike Johanns says another delay would mean even more uncertainty for farmers and ethanol producers—and in his words “would seriously call into question the administration’s commitment to growing our nation’s fuel sources.” Nebraska’s Ben Nelson says the delay puts jobs in Nebraska and the U.S. at risk and prevents compliance with the Renewable Fuels Standard. And ....

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