SEMA: EPA Seeks to Expand Sales of E15, Other Biofuels, Give EV Credits

EPA E15 EV FYI

The U.S. Environmental Protection Agency (EPA) has issued a proposed rule to expand the amount of biofuels blended into gasoline by oil refiners during the next three years. The biofuel amounts would be 20.82 billion gallons in 2023, 21.87 billion gallons in 2024 and 22.68 billion gallons in 2025. More than 15 billion gallons per year would be derived from corn-based ethanol with the remainder coming from switchgrass, animal fats or methane from dairy farms and landfills. Under the EPA program, oil refiners are required to meet the biofuel blend volumes or buy tradeable credits from refiners that do.

In order to meet the biofuel volumes, the EPA agreed in 2011 to allow the amount of ethanol in gasoline to increase from 10% to 15% (E15) for model-year ’01 or newer vehicles. Ethanol, especially in higher concentrations such as E15, can cause metal corrosion and dissolve certain plastics and rubbers in older automobiles that were not constructed with ethanol-resistant materials and certain specialty high-performance equipment installed on newer vehicles. Although the EPA requires E15 gas pumps to include a warning label about fueling restrictions, SEMA continues to believe this is insufficient to guard against misfuelling.

The EPA is also proposing to include electricity made from renewable biomass into its biofuels program. The EPA would award a credit for power generated from biomass (e.g.: landfill or agricultural methane) that is then used to power electric vehicles.