WASHINGTON – Ethanol industry groups announced on August 11 an “unprecedented” nationwide campaign — “Blend Your Own Ethanol” campaign (or BYOethanol) — to install 5,000 blender fuel pumps in three years that will allow consumers to choose the mix of ethanol in their gasoline.
In a joint statement, the American Coalition for Ethanol and the Renewable Fuels Association said they plan to install 5,000 of the pumps in the next three years. “Consumers can enjoy more choices at the pump, gas station owners can experience product flexibility, and the nation can achieve its renewable fuels targets — all thanks to the blender pump and the wider distribution of E85 and mid-range ethanol blends,” the statement notes.
The announcement comes after the U.S. Environmental Protection Agency dropped its investigation into the use of blender fuel pumps and a private standard-setting organization unveiled a process to certify new equipment that dispenses ethanol blends higher than the E10 level EPA currently allows in conventional gasoline, reports InsideEPA.com.
Speaking at the ACE annual meeting in Milwaukee yesterday, NACS Vice President of Government Relations John Eichberger said that the blender pump campaign may be welcome in the future, provided that the equipment is deemed compatible and provides legal protection to retailers who seek to sell E10+ fuels. NACS supports flexibility for retailers to satisfy the demands of their customers, he said, but the current legal structure does not permit retailers to sell any fuels containing more than 10 percent ethanol. He stressed that these legal challenges are not excuses to delay the introduction of ethanol fuels; they are real impediments to implementing the federal renewable fuels standard.
“We hope to work with ACE and others in the ethanol and petroleum industries to find a solution to compatibility liability,” Eichberger told NACS Daily. “NACS is not opposed to moving forward with renewable fuels, provided the science supports doing so and retailers are not going to be held liable or found in violation of the law for selling the product. This is an issue our respective industries should be working together to resolve, and I hope we will.”
Another path giving the groups the green light to launch their campaign is the August 10 announcement (see today’s NACS Daily story) that Underwriters Laboratories has announced a new certification path for fuel dispensers for mid-level ethanol blends up to E25.
Meanwhile, Inside EPA notes that blender fuel pumps “are a concern because any fuel above E10 is supposed to be limited to flex-fuel vehicles (FFVs), which can operate on any combination of ethanol and gasoline up to E85. Ethanol proponents say blender pumps are limited to FFV operators and are needed because many find their vehicles operate better on blends lower than E85.”
Petroleum retailers, along with auto and engine makers, also content that the pumps will “entice drivers of non-FFV vehicles because fuel with larger quantities of ethanol is cheaper than conventional gasoline, raising a host of potential mechanical and safety issues.”
Both the blender pump campaign and UL announcements remain problematic.
First, UL will not recertify any equipment already in service, and any retailer who wants to sell these fuels will have to replace their equipment. Second, the blender fuel pump campaign is problematic for similar reasons because there is no legal approval in place for equipment that is already in service to sell higher-blend fuels.
Eichberger explained to ACE conference attendees that if every retailer is required to replace equipment in order to sell higher ethanol blended fuels, the economics will not support the transition. More than 60 percent of retail locations are single-store companies who cannot afford to replace their fueling infrastructure. He also noted that efforts to pin the cost of equipment installations on major oil companies are misdirected because the companies are leaving the marketplace, meaning all costs will be borne by independent business owners. Consequently, a solution for existing equipment must be found.