FOR MORE INFORMATION:
Monte, 515-252-6249

FOR IMMEDIATE RELEASE
December 1, 2009

EPA’s Lack of Action on E15 Harms Iowa Consumers

Signal of Future Approval Comes with Caveats

JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) today expressed disappointment at the EPA’s announcement that it is delaying a decision on the E15 waiver request.  In addition, the EPA announcement signaled other troubling caveats to any future E15 approval.

“The EPA has effectively kicked the E15 can down the road,” said Monte Shaw, IRFA Executive Director.  “While not surprising, the EPA non-decision is highly disappointing.  There is a mountain of scientific evidence on the pro-E15 side and nothing on the other.  Yet, the EPA technocrats decided more testing was needed.  With E10 currently selling for about 13 cents per gallon less than E0 (non-ethanol blended gasoline), one could expect E15 to sell for about 19 or 20 cents cheaper.  Iowans will purchase roughly 100 million gallons of E10 in December.  If those E10 gallons were E15 instead, Iowans could save about $6.5 million in fuel costs in December alone – during a recession and period of high unemployment.  That $6.5 million would put quite a few presents under the Christmas tree.”

While the EPA acknowledged “that ethanol will need to be blended into gasoline at levels greater than the current limit of 10 percent,” it insisted that additional testing being conducted by the U.S. Department of Energy is needed before a final decision “in the mid-year timeframe” of 2010.  EPA also signaled that any future action likely would only “approve E15 for 2001 and newer vehicles.”

Shaw added, “It’s a positive that EPA is signaling the potential for partial approval of E15 sometime next year.  However, the testing to date does not show any problems with E15 for vehicles older than 2001.  Splitting the vehicle fleet like that would diminish the positive impact of E15, while at the same time complicating a retailer’s decision on whether or not to offer consumers the fuel.  Such a decision should only be made if compelling science demonstrates it is absolutely necessary.  To date, such science does not exist.  Further, the EPA should move ahead under existing law and regulations to approve E12 immediately – even as EPA continues the testing on E15 it has decided is necessary.  The E15 waiver request included ‘other blends’ and the public docket is full of scientific and legal support for E12 as an immediate step forward.  For the EPA’s non-decision today to entirely ignore E12 is very frustrating.”

           Iowa is the leader in renewable fuels production.  Iowa has 39 ethanol refineries capable of producing nearly 3.3 billion gallons annually.

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

###

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