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FOR IMMEDIATE RELEASE
May 1, 2009

U.S. Government Slow to Act on E15

While Brazil Barrels Toward E30

JOHNSTON, IA – While United States motorists are still limited to blends of no more than 10 percent ethanol (E10) and the EPA slowly considers increasing the blend cap to E12 or E15, the ethanol industry in Brazil, represented by Unica – the Sugarcane Industry Union, is aggressively pushing their federal government to increase their E25 cap up to E30 according to the April 7th edition of Biofuels Brazil.  This comes as Brazilian ethanol producers contend with low prices and surplus supply.

“Despite all of the rhetoric, the United States isn’t leading on biofuels issues,” said Monte Shaw, Iowa Renewable Fuels Association (IRFA) Executive Director.  “As we tip-toe toward E15 and worry about the impact on weed-whackers, Brazil has moved quickly to put in place policies that have freed them from foreign oil.  Maybe the very real price of foreign oil in terms of blood, treasure and environmental degradation should be taken at least as seriously as any hypothetical challenges higher blends pose for small, off-road engines.”

The foot dragging and arguments against approving E15 blends give many Iowans a sense of deja vu.  Thirty years ago when EPA approved 10 percent ethanol blends, Iowa helped pioneer their commercial introduction.  Many of the same issues were raised then as today. Some claimed E10 wouldn’t work in lawn mowers, chain saws and other small engines.  Others said it would hurt legacy vehicles and void warranties.  More time for more testing was demanded.

“If the EPA had given in to the ‘chicken littles’ 30 years ago, we’d be more dependent on foreign oil, smog and GHG emissions would be worse, and hundreds of thousands of green collar jobs wouldn’t exist, noted IRFA’s Managing Director Lucy Norton.  “As with any fuel, adoption and universal consumer acceptance takes time. Manufacturers and consumers worked through these issues and now E10 is a ubiquitous part of America’s fuel supply.”

Two decades ago Brazil’s government required all gasoline stations to offer a base ethanol blend for all cars (usually between 20-25 percent ethanol) and a separate pump for vehicles capable of using E100.  Given this universal supply network, today nearly every new car sold in Brazil is a flexible fuel vehicle (FFV) capable of using either fuel.  FFVs and E25 for “regular” cars has allowed Brazil to become completely independent of foreign oil.  Instead they export renewable fuels like ethanol and biodiesel throughout the world.

Iowa is the leader in renewable fuels production.  Iowa has 39 ethanol refineries capable of producing nearly 3.2 billion gallons annually.  Four ethanol refineries under construction will add nearly 600 million gallons of capacity.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s ethanol and biodiesel producers. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.

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For more information, visit the Iowa Renewable Fuels Association website at:  www.IowaRFA.org.