July 01, 2010
EPA Official Offers Positive Outlook for E15 Ruling, but Cautions Patience
Published in 25x'25 Blog
In candid remarks opening the second day of the 6th National 25x’25 Renewable Energy Summit, a top EPA official said she is “very confident” about decisions that could lead to E15 ethanol blends on the market, including one late September for 2007 models and newer, and another in late November for 2001 models and newer. Gina McCarthy, EPA Assistant Administrator for Air and Radiation said that while the “outlook is positive” about EPA approval of the higher blend, the EPA official conceded that additional federal and state labeling rules, fuel certification, storage rules and distribution testing will likely push the actual introduction of E15 at least well into next year.
Still, McCarthy said, the agency has been working with ethanol manufacturers making sure they provide the information needed to expedite the E15 waiver application process expected to begin at the federal level in late August. “I share the pain” of having to put producers through the bureaucratic approval process, “so I expect to see the gain” from collaboration and preparation. But state regulators will be applying their own certification and fire-code related storage rules, adding possible further delay to full market integration.
She said the agency is legally precluded from issuing an interim approval for E12 called for by some ethanol advocates until action has been taken on the E15 waiver request, though she suggested there may be some expedited movement on an E12 decision once the first E15 decision comes down in late September.
McCarthy said EPA desires a legislative solution to the nation’s need for a comprehensive energy policy. “EPA understands the importance of making the right policies and decisions…that will help us transition to a clean energy future.” Noting that today, July 1, is the first day of enactment of the new Renewable Fuels Standard (RFS2), she said the agency also understand the importance of hitting the RFS2 goal of 36 billion gallons of renewable fuels by 2022, including 16 billion in second-generation cellulosic fuels. Hitting the goal, she said, will reduce American oil imports by $40 billion annually, remove 138 million metric tons of greenhouse gas emissions and increase net farm income by $13 billion.
And while more than 100 facilities are currently working on cellulosic fuels, no viable amounts are ready for market. “Cellulosic is where we need the innovation,” she told summit attendees. “We need to move from the experimental to the market as soon as possible.”
In a broader observation, she said an EPA “snapshot” analysis of conditions in 2030 based on current technology shows a reduction of 600 million to one billion metric tons of greenhouse gas emissions, the equivalent of taking 120-200 million cars off the road.
