The US refining industry told a Senate panel on
Wednesday that ethanol should not be blended into gasoline at concentrations
greater than 10% until comprehensive scientific testing shows that so-called
"mid-level ethanol blends" are safe for consumers and their vehicles.
Charles Drevna, president of
the National Petrochemical and Refiners Association (NPRA), told a subcommittee
of the Senate Environmental and Public Works panel that mid-level ethanol
blends could harm gasoline-powered engines and may lead to increases in
emissions from these engines that could harm the environment and public health.
"Our joint message should not be characterized as
anti-ethanol. Our organizations are not opposed to the prudent development and
use of biofuels, including ethanol, to diversify our
nation's transportation and nonroad fuels
portfolio," Drevna said.
"However, before the use of mid-level ethanol
blends is permitted, we must ensure that these blends are safe for consumers,
do not harm gasoline-powered engines, and do not lead to increases in emissions
from these engines that will harm the environment," he added.
In addition to representing US refiners, Drevna was also testifying on behalf of the National Marine
Manufacturers Association (NMMA) and the Outdoor Power Equipment Institute
(OPEI).
The issue of mid-level ethanol blends has come to the
fore because of a 2007 energy law that mandated a steady increase in the use of
renewable fuels until 2022, when 36 billion gallons per year of biofuels are expected to be blended into transportation
fuels.
The idea is to reduce dependence on oil by making
greater use of biofuels, but the issue of how to
reconcile this with the ethanol "blend wall" of 10% -- the maximum
concentration allowed under current regulations -- was not fully considered.
The blend wall debate is picking up steam now as the
mandate ramps up. In 2008, about 9 billion gallons of ethanol were blended into
transportation fuels, and the mandate calls for about 11.1 billion gallons this
year, bringing the level ever closer to the 10% limit.
According to the US Energy Information Administration
(EIA), US
gasoline consumption amounted to 139 billion gallons in 2007 and 135 billion
gallons in 2008. Since ethanol currently is blended into about 75-80% of all
the gasoline sold in the US
-- generally at a blend rate of 10% -- the US has not yet hit the blend wall.
However, with the economic recession taking its toll on gasoline demand, that
day could arrive sooner than previously expected.
"If gasoline demand in the United States declines
in 2009 at the same rate it did in 2008, then our country could reach the E10
saturation point as soon as 2011," Drevna said.
He cited EIA forecasts predicting that gasoline demand this year will decline
by a total of 10% compared with 2007.
The Environmental Protection Agency (EPA) is currently
performing a scientific review on the impact of mid-level ethanol blends on
gasoline engines and emissions with an eye on increasing the blend wall to
12-13% in the near future and to 20% further down the line. President Barack
Obama remains a big backer of biofuels. He campaigned
on a plan to nearly double the existing renewable fuels mandate to 60 billion
gallons per year by 2022.
For Obama and many Democrats, the allure of biofuels lies in the amount of oil it displaces. Last year,
ethanol displaced about 630,000 barrels per day of oil. By 2022 -- if currently
mandated levels are reached -- that total would jump to around 2.5 million b/d,
equal to the amount of crude the US
now imports from Venezuela
and Saudi Arabia
combined.
But some members of Congress are raising questions
about whether the mandate can be sustained.
"Few could dispute that Congress erred in pushing
too much ethanol too fast. In this light, I encourage EPA to reject calls to short-circuit
its regulatory obligation and instead fully utilize sound science to determine
the feasibility of mid-level ethanol blends," said James Inhofe
(R-Oklahoma), ranking member of the committee.
Inhofe said the "overly aggressive mandate"
has led to a consumer backlash in parts of the country, as complaints abound
that ethanol hurts gas mileage and chokes the engines of boats and motorcycles.
Paul Merolli, Washington