By LINDA McGURK
Indiana Correspondent

WASHINGTON, D.C. — The Environmental Protection Agency (EPA) announced Dec. 1 that it won’t decide whether to raise the allowable ethanol content in gasoline until the middle of next year. But citing preliminary results from ongoing studies the agency gave ethanol advocates good reason to believe that the so-called “blend wall” will indeed increase from 10 to 15 percent.

“This is generally good news – the EPA says that E15 is doable, and that’s important for America,” said Jonathan G. Overly, executive director of the East Tennessee Clean Fuels Coalition. “We need to find out a way to diversify away from petroleum.”

In a letter to Growth Energy, a coalition of U.S. ethanol supporters which petitioned the EPA to increase the blend wall last March, the EPA said the Department of Energy is in the process of testing the long-term effects and component durability when E15 is used in vehicles over thousands of miles. So far, only two cars have completed the test, but the EPA expects 12 more vehicles to be done by next May and an additional five will complete the test in August of 2010.

What caused optimism among ethanol advocates was EPA’s assessment that, “Although all of the studies have not been completed, our engineering assessment to date indicates that the robust fuel, engine and emissions control systems on newer vehicles (likely 2001 and newer model years) will likely be able to accommodate higher ethanol blends, such as E15.”

The EPA also announced that it has started to develop labeling requirements for fuel distributors, should the higher blend limit be approved. Overly said the EPA announcement should send a signal to automakers that the United States needs more flex-fuel vehicles on the roads.

“The next discussion is going to be on E20, and if we want to use more American-made fuel we need flexible vehicles. That’s the easiest way to increase the use of renewable fuels,” he said.

“We’ve been told by GM and Ford that the difference in cost for a flex-fuel vehicle compared with a regular vehicle is anywhere from zero to a hundred dollars, so the cost is pretty small. Making the switch is not a big deal for the automakers, and it’s pretty much in the wash for the consumer. And those vehicles can run on any ethanol blend offered at the pump.”

The National Corn Growers Assoc. (NCGA) supported Growth Energy’s petition and NCGA President Darrin Ihnen said the organization is satisfied with EPA’s “tacit endorsement” of a higher blend wall. “While we are disappointed the Environmental Protection Agency has chosen to postpone its decision on the higher ethanol blends, we are pleased the positive tone of their response shows an understanding of the importance of moving to higher blends in the very near future,” said Ihnen.

But the Renewable Fuels Assoc. (RFA) alleged that the delay of EPA’s decision threatens to paralyze the ethanol industry and the development of renewable fuels. “As EPA itself indicated, the scientific data to date has demonstrated no ill-effects of increased ethanol use in any vehicle currently on the road,” said Bob Dinneen, president and CEO of RFA. “Moreover, this delay will chill investment in advanced biofuel technologies at a critical time in their development and commercialization.”

RFA also criticized EPA for limiting its ethanol blend research to vehicles model year 2001 and newer, and urged the agency to immediately approve an intermediate blend of 12 percent ethanol to “provide some breathing room for the industry” while the tests are completed. After reading EPA’s letter to Growth Energy, Overly with East Tennessee Clean Fuels Coalition said he feels fairly confident E15 will be approved next year.

“We need to see E15 approved and continued support for ethanol,” he said. “We need both E85 and E15.”