MCLEAN, Va. – The Environmental Protection Agency's proposed changes to the Renewable Fuel Standard (RFS) volume mandate for 2014 would “slash for the first time ever the amount of ethanol that must be mixed into the nation's gasoline supply,” reports USA Today.

The newspaper suggests that the recent RFS proposal is “the latest blow to an industry that until recently had seen consumption of the largely corn-based fuel soar.”

Congress first established the RFS under the Energy Policy Act of 2005, which mandated that a minimum of 7.5 billion gallons of renewable fuels be used by 2012. Two years later, the Energy Independence and Security Act of 2007 greatly expanded the mandated volumes to 36 billion gallons by 2022.

However, writes USA Today, some lawmakers in Congress and RFS opponents have been pushing for changes, calling the current RFS mandate “outdated,” and also suggesting that new vehicle technologies such as hybrids and EVs are showing that “ethanol isn't the only game in town.”

"It's not something the average consumer thinks about day after day," Matthew Diersen, a South Dakota State University agricultural economist, told USA Today, adding, "We're to the point where you get other fuels being talked about, electric cars. You get the feeling these alternative fuels might be crowding out the arguments for and against ethanol. I've heard more people talk about how would you plug in an electric car than where could they find or not find" fuel containing E85.

Another obstacle for ethanol, writes the newspaper, is the availability and existing infrastructure at retail locations. Although EPA has approved E15 for most cars and trucks built since 2001, some automakers “refuse to honor warranties or advise against using higher ethanol blends.” According to the Renewable Fuels Association, about 60 gasoline stations in the U.S. are registered to offer E15 blend.

The newspaper continues that an even bigger obstacle for the ethanol industry is E85. Most consumers driving flex-fuel vehicles are unaware that E85 is an option, according to a June 2013 NACS consumer fuels survey that examined current market conditions and assessed consumer familiarity with both E15 and E85.

The NACS survey also found that retailers are concerned about the costs associated with upgrading or replacing equipment to legally store and sell these new fuels: 46% said that the costs to upgrade to sell E15 were a concern, and 44% said that the costs to upgrade for E85 were a concern. Failure to use certified equipment can expose retailers to potential liability. Retailers also expressed concerns over potential liability from misfueling: 46% and 44% cited liability concerns over E15 and E85, respectively.

USA Today reports that CITGO owner Wan Kang in Annapolis said he only sells about 20 to 30 gallons of E85 each day, compared to about 1,350 gallons of the traditional E10 blend. "It's very slow," he told the newspaper, adding that his location has been offering E85 since 2003. "We don't sell that much. I plan to keep it but I don't know about the future."

As regulators and members of Congress in Washington continue to evaluate the current RFS mandate, NACS will have a seat at the table. Last week Paige Anderson, NACS director of government relations, spoke on behalf of the convenience and fuel retailing industry at a public hearing convened by the EPA on its proposed RFS changes.

“The convenience and fuel retailing industry sells approximately 80% of the gasoline consumed in the United States. Our mission is to sell products that consumers want to buy. We don’t prefer one fuel type over another. If demand is for E10, we sell E10. If consumers want E85, we sell E85,” said Anderson.

“The reality is that consumer acceptance of higher blends of ethanol beyond 10% remains a challenge. Just because people are purchasing flex fuel vehicles does not mean they are filling up their gas tanks with E85. So, when a retailer is making the decision on whether or not to spend thousands of dollars on new equipment or retro-fitting current equipment in order to sell a new fuel, that financial decision will be based on consumer demand.”