EPA: More Access Needed for Higher Ethanol Blends

Government agency sees growth potential for pumps offering E15 and higher, but the increase won’t be enough to increase fuel volumes for 2016.

​HOUSTON June 10, 2016; According to the U.S. Environmental Protection Agency (EPA), the investment in equipment by industry and government will accelerate access to higher-ethanol blends at the pump, but not quickly enough for higher fuel mandates for 2016, the Argus reports. While grants to install tanks and pumps will help increase availability of E15, the fuel still has barriers to overcome before regulators are comfortable predicting a rise in consumption, the agency said.

This week, the EPA held hearings on its draft proposed renewable volumes for 2016 under the Renewable Fuel Standard (RFS). While E10 was adopted quickly, E15 and E85 have proven more difficult. In addition, the only vehicles approved by EPA for E15 use are flex fuel vehicles and conventional vehicles of model year 2001 and later.

Because most refiners have jettisoned ownership of retail stations over the last 10 years, retailers have no obligation or incentive to offer biofuels with the high price of obtaining certified equipment.

NACS estimated that more than 124,000 locations sold fuel in 2014, but around 175 had E15, the EPA reported. The U.S. Department of Agriculture’s Biofuels Infrastructure Partnership (BIP) assists stations in acquiring equipment, which could help more retailers sell E15. The program is helping 21 states with fuel tank installation and pumps, with Florida, Illinois and Texas receiving the lion’s share, which would add nearly 2,100 pumps at 348 gas stations.