Gas stations said to have more leeway in marketing ethanol after EPA ruling mp1

Ethanol in concentrations of 20 and 30 percent can be sold from blender pumps and used in flexible-fuel vehicles, according to a ruling by the U.S. Environmental Protection Agency.

The ruling came in response to an inquiry from the South Dakota Petroleum and Propane Marketers Association, which represents about 500 gas stations, and the South Dakota Association of Convenience Stores.

Dawna Leitzke, executive director of the Petroleum and Propane Marketers group, wrote the EPA in October, reported The Argus Leader, a newspaper in Sioux Falls, S.D. "My question concerns other grades of ethanol fuel (besides E85) and whether it is legal to offer those lesser grades for sale in motor vehicles through blender pumps," Leitzke wrote.

Margo Tsirigotis Oge, director of the EPA Office of Transportation and Air Quality, replied, "I am not aware of any federal law that prohibits sale of such blends for use in FFV's."

In response to customer requests, a few South Dakota fuel retailers took blender pumps – used to formulate various concentrations of Number 1 and Number 2 diesel fuel – and used those pumps to create E20 and E30 ethanol blends. The customers, for the most part, weren't using those ethanol blends to fuel FFVs, however, but cars and trucks certified to burn only E10, The Argus Leader reported.

The big question, whether E20 and E30 used in vehicles certified for E10 violates the Clean Air Act, remains unanswered, Leitzke said, according The Argus Leader article published Dec. 8.

Ron Lamberty, vice president of market development for the American Coalition for Ethanol, hailed the EPA ruling.

"That's terrific,” he told the newspaper. “To start out with, we have assumed that as long as those (blender pumps) were clearly marked for use by flexible-fuel vehicles, we were not in violation of any law. It's just nice to have that clarification."

Beyond that, anything that deals with the use of E20 and E30 is helpful, Lamberty said. Now, 99 percent of U.S. ethanol is blended as E10.

"In the future, though, especially if this cellulosic ethanol takes off, we are going to need a market for about 30 to 40 percent" blends, Lamberty said.

Most ethanol in the U.S. is produced from corn, but research into using cellulose-based feedstocks such as switchgrass could greatly expand the production capacity of the ethanol industry.

There is no auto manufacturers' data on how ethanol in concentrations higher than 10 percent performs in engines designed to burn E10, according to The Argus Leader, which noted that motorists seem to have been informally testing that themselves.

"Before the blender pumps, customers would fill half their tank with E10, end their transaction, then fill the rest of their tank with E-85 and be on their way," Leitzke said.

South Dakota Sen. John Thune and South Dakota Gov. Mike Rounds helped press the EPA for a ruling, according to Leitzke.

The National Association of Convenience Stores published the complete text of the letter from Oge of the Office of Transportation and Air Quality:

“It is legal to sell gasoline containing up to 10 percent ethanol (E-10) for use in any gasoline-fueled vehicle in the United States. Gasoline containing more than 10 percent ethanol may only be sold for use in flexible-fueled vehicles (FFVs) that are certified to meet emission standards on E-85 (85 percent ethanol and 15 percent gasoline), gasoline without ethanol (E0), and any intermediate combination of gasoline and ethanol. Most vehicles are certified to emission standards for gasoline only, and thus are limited to no more than E-10.

“You asked for our position on marketers selling ethanol blends other than E-10 and E-85 through blender pumps for use in FFVs. You also asked if there are any prohibitions under the Clean Air Act. I am not aware of any federal law that prohibits sale of such blends for use in FFVs.

“However, the use of such blends in gasoline-only vehicles is prohibited under the Clean Air Act. Use of gasoline containing ethanol amounts greater than E10 in a gasoline-only vehicle could cause emissions from the vehicle to increase. Section 203(a)(3)(A) of the Clean Air Act (the Act), 42 U.S.C. 7522(a)(3)(A) prohibits any person from rendering inoperative emission control devices or elements of design. In addition, Section 203(a) prohibits any person from causing a violation of Section 203(a)(3)(A). Mis-fueling a motor vehicle in this manner may violate this provision of the Act. The retailer who has variable ethanol percentage pumps may be liable for causing such violation, whether the mis-fueling occurs at self-serve or full-serve pumps.

“Our understanding is that current industry practice is to dispense E85 from pumps that are separate from normal gasoline pumps and clearly marked as being appropriate for use only by ethanol FFVs. Variable ethanol percentage pumps that are installed in this manner, stand-alone and clearly marked as being available only for ethanol FFVs, may reduce the risk of such a violation.”