The Auto Writer

A move being pushed by states comprising America’s breadbasket has the auto industry up in arms, as new ethanol limits are being considered. Right now, straight gasoline can include as much as ten percent ethanol in it, but a movement to push that limit up to twelve or fifteen percent is underway.

Farmers, Automakers Take Sides

The Environmental Protection Agency (EPA) is in the middle of a battle pitting America’s farming industry against car manufacturers, domestic and foreign. Farmers want their corn crops sold and one way to do that is to make sure that more ethanol is produced. Right now, E85 fuel (85% corn/15% gasoline) is being marketed throughout most of the central US, usable in cars which can run on this type of fuel.

All cars built today are designed to run on E10 (10% corn/90% gasoline), but a move to E12 or E15 could corrode engines which aren’t designed to run on increased ethanol blends. That proposal has the trade group (Association of International Automobile Manufacturers or AIAM) representing major domestic and foreign car makers concerned as the new blend could damage engines or disable cars. In addition, greenhouse gas emissions climb with every percentage increase in the ethanol blend.

AIAM Speaks Out

This past July the AIAM issued a statement regarding the proposed waiver which would allow E12 or E15 gasoline to be sold. “AIAM and its member companies have long recognized the importance of addressing climate change and have supported efforts to reduce greenhouse gas emissions while significantly increasing fuel economy. With so much progress made by government and industry in recent months to meet these goals, we believe it would be premature for EPA to approve the near-term distribution and sale of fuels containing more than 10% ethanol without further testing to prevent unintended negative consequences.

Behind the push to higher ethanol blends are several states including Iowa where Governor Chet Culver urged the EPA this past May to consider issuing the waiver, a decision which is due by December 1st.

“Iowa has led the nation in the development and use of ethanol,” said Governor Culver.  “By lifting the artificial cap on ethanol blends, we can increase the demand on ethanol, reduce our dependence on imported oil, and create new good-paying green collar jobs.  As Governor, I have never wavered in my commitment to ethanol, and believe that when combined with other homegrown energy efforts like wind and biodiesel, can play an integral role in building a brighter, stronger, greener future for Iowa, and America.”

Obama Administration Pushes Ethanol

Supporting state efforts to push ethanol, the Obama administration set aside approximately one-tenth of one percent of its $787 billion stimulus package to aid the industry. According to The Detroit News, these funds include $480 million for pilot- and demonstration-scale biorefineries, $176.5 million for commercial-scale biorefinery projects and $130 million for research.

Also opposing the ethanol waiver are snowmobile and marine engine manufacturers who fear that their products will be harmed if the higher blend was used. Cattlemen have come out against the waiver as well citing that prices will likely rise if more corn is diverted to fuel vehicles instead of feeding livestock.