Domestic Fuel

The countdown to the Copenhagen Climate Change Conference is on as the talks begin in six days. The conference, December 7-18, 2009 is a meeting of the UN to hash out a successor to the Kyoto protocol that is set to expire in 2012. The aim is to prevent global warming, and similar talks date back to the 1992 Earth Summit in Rio.

While we haven’t focused much on Copenhagen on this site, alternative energy will play one of the biggest roles during the summit for its potential to curb worldwide greenhouse gas emissions. According to an article in the Guardian, “Climate scientists are convinced the world must stop the growth in greenhouse gas emissions and start making them fall very soon. To have a chance of keeping warming under the dangerous 2C mark, cuts of 25%-40% relative to 1990 levels are needed, rising to 80%-95% by 2050. So far, the offers on the table are way below these targets.”

What I find most interesting is that while there appears to be a scientific consensus on the existence of global warming and that it is caused by greenhouse gas emissions, mainly CO2, there are still many scientists who don’t agree. As such, the question must be asked, should we be moving forward so quickly both in the U.S. and around the world, on climate policies based on greenhouse gas emission reductions?

Now, before you shoot me and accuse me of being indifferent to the environment and human health issues, less pollution is always good and many economists predict that the next “Green Revolution” (the first one was in the 70s) will help our country rise above the recession. That said, I do believe we need to do something, I’m just not convinced the options on the table are the right ones.

Therefore, over the next week, I’m going to be offering three views on climate change as laid out in three books focusing on global warming. From there, it’s up to you to decide what direction worldwide leaders should be taking.

The ethanol industry continues to let the EPA know its thoughts on the postponement of the decision regarding the E15 Waiver request, but like many other organization, is confident that the EPA will approve up to E15 blends by mid-2010.

Brian Jennings, the Executive Vice President of the American Coalition for Ethanol (ACE) and one of the ethanol groups to submit the original waiver request, commented today, “While we would have strongly preferred that EPA approved E15 today for all vehicles, we’re pleased that progress is being made toward this goal. We are confident that in the long run the data will demonstrate that E15 and higher ethanol blends such as E20 and E30 can effectively be used in all vehicles.”

While the EPA acknowledges that ethanol will need to be blended into gasoline at levels great than 10 percent (E10) to meet the goals of the Renewable Fuel Standard which states that the country needs to blend 36 billion gallons of alternative fuels by 2022, there is consternation among supporters of their unwillingness to acknowledge current vehicle research that supports the use of mid-level blends of ethanol. ACE has conducted research regarding the performance of mid-level ethanol blends in conventional vehicles for the past several years.

The organization believes that in preparation for the E15 waiver to be approved now is a good time for Congress to enact the Harkin-Lugar ‘Choice Act,’ S. 1627, “which promotes flexible fuel vehicles, blender pumps and ways for fuel retailers to economically add more options for their customers.”

Jennings concluded, “Ultimately we need to shift the power to decide what fuels motorists use away from government agencies and oil companies and to consumers.  We support maximum consumer choice for motorists to use E10, E15, E20, E30, E85, or ethanol-free gasoline, and we believe that when consumers are finally given these meaningful choices they will select the ethanol-blended fuels that work best in their vehicles. Senate Bill 1627 will be one of ACE’s top legislative priorities for 2010.”

Click here to read ACE’s full statement.

The EPA received more than 80,000 comments regarding the E15 waiver and with responses coming in a tidal wave, there may well be another 80,000 more. Yesterday, the EPA submitted a letter to “postpone” making a decision regarding the E15 waiver petition.

“This delay from EPA threatens to paralyze the continued growth of the American ethanol industry because of its decision to over analyze this decision,” said Renewable Fuels Association (RFA) spokesperson, Matt Hartwig.

According to Hartwig and seconded by many in the ethanol industry, the data that has been submitted to the EPA in support of this request, “demonstrates that there are no ill effects of ethanol with vehicles today.”

He continued, “In order to avoid this paralysis by analysis, we believe EPA should immediately approve an intermediate ethanol blend such as E12 or E13.” This would represent several more billion gallons of ethanol in the marketplace and, “signal a willingness by the EPA to work with the industry to expand renewable fuels.” It would also, concluded Hartwig, provide a “glimmer of hope,” for those second generation ethanol companies that there will be a market for their product.

You an listen to the full interview with Matt Hartwig here.

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The deadline was met yesterday on the Environmental Protection Agency’s (EPA) ruling on the E15 waiver, or was it? The EPA, in a letter to Growth Energy, the organization that filed the E15 Waiver, also known as the Green Jobs Waiver, has ruled to not rule. According to the letter the EPA wrote, “we want to make sure we have all the necessary science to make the right decision.” The letter also stated, “our engineering assessments indicate 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.”

Today, that decision is to postpone a ruling on the petition until the DOE completes a study between May- August 2010. In addition, the EPA is looking at “addressing fuel pump labeling issues” should ethanol be blended up to 15 percent in the future. It appears that the EPA won’t make a decision on this petition until the end of 2010 but that when it does, it will be positive.

In response to the letter, Growth Energy Co-Chairman Gen. Wesley Clark said, “This announcement is a strong signal that we are preparing to move to E15, a measure that will create 136,000 new U.S. jobs, cut greenhouse gas emissions and lessen America’s dependence on imported oil.”

Tom Buis, CEO of Growth Energy, noted, “The Growth Energy Green Jobs Waiver brought to light the issue of the regulatory cap on ethanol and is responsible for moving this process forward. The importance of increasing the blend is now universally understood. This expanded market opportunity is necessary to draw capital investment for cellulosic ethanol and allows the industry to comply with the Renewable Fuel Standard.”

Buis also commended the EPA for its intent to begin the labeling and public education process in anticipation for higher ethanol blends in the marketplace.

Click here to read the EPA letter and Growth Energy’s response.

Listen to the Growth Energy press conference opening statements from this morning here:

Podcast: Play in new window | Download (3.4MB)

Ethanol industry groups are reacting to the announcement this morning from the Environmental Protection Agency that may be another six months before a final decision can be made on increasing the allowable ethanol content in fuel to 15 percent.

Growth Energy, the coalition of U.S. ethanol supporters that filed the Green Jobs Waiver seeking E15, is optimistic that the agency will approve E15 upon the completion of ongoing tests early next year.

“This announcement is a strong signal that we are preparing to move to E15, a measure that will create 136,000 new U.S. jobs, cut greenhouse gas emissions and lessen America’s dependence on imported oil,” said Gen. Wesley Clark, Co-Chairman of Growth Energy.

“While we believe the data included in the Green Jobs Waiver supports raising the blend to E15, critics have called for additional testing. We are confident the ongoing tests will further confirm the data we submitted in the Growth Energy Green Jobs Waiver and silence those critics, allowing more American-produced energy to enter the market.” said Tom Buis, CEO of Growth Energy.

The Renewable Fuels Association says the delay threatens the future growth of the ethanol industry.

“In order to avoid paralysis by analysis, EPA should immediately approve intermediate ethanol blends, such as E12,” said RFA president and CEO Bob Dinneen in a statement. “Allowing for a 20 percent increase in ethanol’s potential share of the market would provide some breathing room for the industry while EPA finishes its testing on E15. Additionally, it would represent a good faith gesture that underscores the commitment President Obama has pledged to biofuels.”

EPA’s announcement in a letter to Growth Energy today indicated that it will be the middle of 2010 before they have enough data to make a final decision on the waiver.

The U.S. Environmental Protection Agency (EPA) today announced that it expects to make a final determination in mid-2010 regarding whether to increase the allowable ethanol content in fuel.

The agency responded in a letter sent today to Growth Energy, the association that requested a waiver that would allow for the use of up to 15 percent of ethanol in gasoline. EPA says that while not all tests have been completed, the results of two tests indicate that engines in newer cars likely can handle an ethanol blend higher than the current 10-percent limit. The agency will decide whether to raise the blending limit when more testing data is available. EPA also announced that it has begun the process to craft the labeling requirements that will be necessary if the blending limit is raised.