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Boost for cars or bust? Ethanol debate heats up

Published: Tuesday, June 25, 2013 12:38 p.m. CDT

WASHINGTON (AP) — It’s a dilemma for drivers: Do they choose a gasoline that’s cheaper and cleaner even if, as opponents say, it could damage older cars and motorcycles?

That’s the peril and promise of a high-ethanol blend of gasoline known as E15. The fuel contains 15 percent ethanol, well above the current 10 percent norm sold at most U.S. gas stations.

The higher ethanol blend is currently sold in just fewer than two dozen stations in the Midwest, but could spread to other regions as the Obama administration considers whether to require more ethanol in gasoline.

As a result, there’s a feverish lobbying campaign by both oil and ethanol interests that has spread from Congress to the White House and the Supreme Court.

The American Petroleum Institute, the oil industry’s chief lobbying group, has asked the Supreme Court to block sales of E15. The court could decide as soon as Monday whether to hear the ethanol case, which combines similar requests by groups representing refiners and car manufacturers.

Putting fuel with up to 15 percent ethanol into older cars and trucks “could leave millions of consumers with broken down cars and high repair bills,” said Bob Greco, a senior API official who has met with the White House on ethanol issues.

The ethanol industry counters that there have been no documented cases of engine breakdowns caused by the high-ethanol blend since limited sales of E15 began last year.

“This is another example of oil companies unnecessarily scaring people, and it’s just flat-out wrong,” said Bob Dinneen, president of the Renewable Fuels Association, an ethanol industry group.

The dispute over E15 is the latest flashpoint in a long-standing battle over the Renewable Fuel Standard, approved by Congress in 2005 and amended in 2007. The law requires refiners to blend increasing amounts of ethanol into gasoline each year as a way to decrease reliance on fossil fuels and lower greenhouse gas emissions that contribute to global warming.

The Environmental Protection Agency has proposed a 16.5 billion-gallon production requirement for ethanol and other gasoline alternatives this year, up from 15.2 billion gallons last year. By 2022, the law calls for more than double that amount.

Biofuel advocates and supporters in Congress say the law has helped create more than 400,000 jobs, revitalized rural economies and helped lower foreign oil imports by more than 30 percent while reducing emissions of carbon dioxide and other greenhouse gases.

But the oil industry, refiners and some environmental groups say the standard imposes an unnecessary economic burden on consumers. Using automotive fuel that comes from corn also has significant consequences for agriculture, putting upward pressure on food prices, critics say.

“The ever increasing ethanol mandate has become unsustainable, causing a looming crisis for gasoline consumers,” said the API’s Greco. “We’re at the point where refiners are being pressured to put unsafe levels of ethanol in gasoline, which could damage vehicles, harm consumers and wreak havoc on our economy.”

Along with the E15 court case, the API and refiners have swarmed Capitol Hill and the White House to try to have the current mandate waived or repealed.

An EPA official told Congress earlier this month that the agency does not require use of E15, but believes it is safe for cars built since 2001.

“The government is not saying ‘go ahead’ “ and put E15 in all cars, said Christopher Grundler, of the EPA’s director of the office of transportation and air quality. “The government is saying this is legal fuel to sell if the market demands it and there are people who wish to sell it.”

Ethanol supporters say E15 is cheaper than conventional gasoline and offers similar mileage to E10, the version that is sold in most U.S. stations.

The American Automobile Association, for now, sides with the oil industry. The motoring club says the government should halt sales of E15 until additional testing allows ethanol producers and automakers to agree on which vehicles can safely use E15 while ensuring that consumers are adequately informed of risks.

A spokeswoman for the Alliance of Automobile Manufacturers, which represents 12 major car makers, said E15 gas is more corrosive and the EPA approved it before it could be fully tested.

Older cars were “never designed to use E15,” spokeswoman Gloria Bergquist said. Use of the fuel over time could create significant engine problems, she said.

The API cites engine problems discovered during a study it commissioned last year, but the Energy Department called the research flawed and said it included engines with known durability issues.

For now, E15 remains a regional anomaly.

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