E15 ethanol blend clears another hurdle

Efforts to increase the amount of ethanol in gasoline have cleared another hurdle, meaning a 15% biofuel blend could be available this spring if gasoline stations choose to sell it.

The U.S. Environmental Protection Agency has approved industry-submitted studies showing that a blend of 15% corn-based ethanol and 85% gasoline meets the health effects requirement for a new fuel.

About a dozen biofuel producers have asked the EPA for permission to sell the E15 blend.

It could be available within weeks, provided the government gives final approvals and Congress doesn't pass a bill by U.S. Rep. Jim Sensenbrenner (R-Wis.) that would require more tests before the blend is allowed in the marketplace.

Ethanol supporters say E15 would probably be offered at a handful of locations at first, and that for consumers it could be about 12 cents per gallon cheaper than conventional gasoline and 7 to 10 cents cheaper than gasoline blended with 10% ethanol.

Some retailers may choose to replace an 85% "flex fuel" ethanol blend with a 15% version.

That's because only 10 million vehicles can use the "flex fuel," while 150 million can run on 15% ethanol, according to the American Coalition for Ethanol, based in Sioux Falls, S.D.

The 15% blend is meant for newer vehicles, manufactured since 2001. It's not intended for outdoor power equipment such as lawn mowers, garden tractors, all-terrain vehicles and boats.

The new blend could cause premature engine failure, lower fuel efficiency and void warranties, according to outdoor power equipment makers including Briggs & Stratton.

The effect on older vehicles also is questionable, Sensenbrenner said.

"If ethanol is going to be the fuel of the future, then there should be no problem conducting independent, comprehensive scientific analysis of its effect on American drivers," he said in a news release.

Some retailers might wait until the fall to offer E15 because of "summer blend" fuel requirements that weren't written for the higher blend of ethanol. But some are keen to get the fuel, given that improvements in ethanol production have driven down costs and made it more profitable in a business where a penny per gallon can add up to millions of dollars.

"As a practical matter it will probably be fall, although we may see some folks jump in earlier because the price differential is really attractive," said Ron Lamberty, senior vice president of the American Coalition for Ethanol.

The small-engine industry supports Sensenbrenner's bill, partly because engine-makers don't want to spend millions of dollars redesigning products every time there's a fuel change.

Ethanol backers say the bill has stalled in Congress, paving the way for E15 to move ahead.

The solution to problems with E15 and small engines is to not use the fuel in those products, Lamberty said, adding that it would be an option, not a mandate, for consumers.

Gasoline stations would still carry gasoline with a 10% ethanol blend.

Wisconsin ranks seventh among ethanol-producing states. The fuel additive is an important source of income for grain farmers, some of whom also own shares in ethanol plants.

The U.S. ethanol industry is in a tight spot now, with domestic demand saturated and foreign-market exports necessary to keep it viable.

Federal tax credits for ethanol have expired, putting more pressure on the biofuel to stand on its own merit. The new blend would be fine for millions of vehicles, according to ethanol producers.

"It's just putting a little more whiskey in your Coke kind of thing," Lamberty said.

E15 blend

The 15% blend is meant for newer vehicles, manufactured since 2001. It's not intended for outdoor power equipment such as lawn mowers, garden tractors, all-terrain vehicles and boats.

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