US House Committee Debates Bill to Protect Makers, Sellers of E15
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Washington April 19, 2012; Gary Gentile writing for Platts.com reported today that groups on both sides of the issue of increasing the amount of ethanol in the country's gasoline supply agreed Thursday on one point: refiners, blenders and retailers should not be held liable if higher ethanol blends damage vehicle or appliance engines.
Representatives from refiners, retailers, ethanol and consumer groups testified in front of a House Energy and Commerce subcommittee on a bill that would provide liability protection for anyone making or selling the 15% blend, known as E15, as long as they complied with government rules. Such protection is considered mandatory before companies will risk introducing E15 into the US fuel supply.
The bill, sponsored by John Shimkus, Republican-Illinois, would protect makers and marketers of EPA-approved fuels and fuel additives from liability if a consumer mistakenly, or intentionally, misfuels, as long as federal regulations concerning the proper storage and labeling were followed. A similar bill has been introduced in the Senate.
The Environmental Protection Agency last year approved a new gasoline blend consisting of 15% ethanol, up from the 10% currently allowed. But it will only allow its use in conventional vehicles manufactured after 2001, and it has not approved the fuel for use in small appliance or marine engines.
EPA has approved plans to avoid misfueling, including a label on fuel pumps warning consumers that E15 has only been approved for some purposes. But companies say they fear being sued if a consumer misfuels and damages their engine.
"As long as this is the law of the land, everyone on the supply chain has to be protected," Charles Drevna, president of the American Fuel & Petrochemical Manufacturers testified.
Drevna's group, which represents refiners, opposed the approval of E15, saying there has not been sufficient testing to justify its introduction. Other opponents of E15 say the US does not have the authority to introduce a new fuel that can only be used in some engines and not others.
The Renewable Fuels Association, which also supports the legislation, nevertheless contends that EPA was being cautious in only approving E15 for later model cars, but that there is no evidence to suggest older cars would suffer damage.
CONSUMERS UNION OPPOSES SHIFT IN RISK