Summary
The EPA will complete engine testing of higher ethanol inclusion rates by May, 2010 compiling the data to make a decision on potentially higher blend rates (15%) of ethanol into the gasoline. The current maximum allowed blending rates are 10%. Rates of 35% are already used in Brazil where all car manufactures and small engine manufactures sell similar engines as the United States.
Analysis
Lisa Jackson, EPA Administrator testified before Congress yesterday. The issue of higher blends of ethanol into gasoline were addressed. The EPA has be reviewing requests to increase the level of ethanol allowed to be blended in the US gasoline supply for almost a year.
The EPA is will finish the evaluating engine test data in May determining emissions and potential engine damage by allowing ethanol to be blended up to 15% with gasoline. Currently, the maximum amount of ethanol blended is 10% except for E85 that is a minimum of 85% ethanol and can be as high as 98% ethanol. One note on E85, due to cold weather and RVP, E85 in cold states usually is capped at 70% ethanol in the winter.
After reviewing engine data, the EPA will be making a decision regarding granting the requested waiver in late summer. Frankly, this should not be much of an issue for most engines. Clearly, the same major small engine manufactures and the same large car companies selling product in the USA also sell their equipment into Brazil that has ethanol inclusion rates as high as 35%.
