U.S. Environmental Protection Agency Raises Fuel Ethanol Limit to 15%

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Researched by Industrial Info Resources (Sugar Land, Texas)--This week, the U.S. Environmental Protection Agency (EPA) raised the maximum amount of ethanol blended into gasoline from 10% to 15%, to be known as E15. Since 1979, 10% ethanol blending (E10) has been used for cars, light-duty trucks, and off-road motor vehicles.

This latest approved increase is intended for auto and light-duty trucks built since 2007. The EPA also will propose a revised gas pump label requirement to better assist consumers in figuring out which blend to use in their vehicles. Further, some retailers may opt to install new, separate pumps for the E15, or decide which of the two grades to sell.

The ruling should have no impact on the market, because there is enough capacity to meet the additional demand for E15. Additionally, little new construction will start until the credit market improves.

The E15 waiver for this renewable fuel was made after the Department of Energy (DoE) reviewed extensive testing and other data on the effects of E15 on engine performance, durability and emissions.

Jay Brunson, Industrial Info's vice president of research for the Alternative Fuels Industry, adds: "This decision will increase economic opportunities and continue to reduce our dependence on foreign oil. Automakers must embrace this change and continue to study the effects of E15 on vehicles."

Later this year, the EPA will decide on the use of E15 in auto and light-duty truck models from 2001 to 2006, after it receives the test results of DoE testing.

Industrial Info's Databases provides a comprehensive outline of all current development activities in the emerging alternative fuels market. Our North American Biodiesel Database covers 158 operational plants and 77 plants under development. Our North American Ethanol Database covers 208 plants currently in operation and 140 plants under various development phases. Our North American Wood Fuel Pellet Database includes 63 operational plants producing greater than 25,000 tons annually, and 35 projects in progress.

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