Industry Leaders Urge President To Allow E12 Ethanol

Leaders representing Illinois agriculture, fuel retailers and ethanol manufacturers sent a letter to the White House on Aug. 13 urging President Barack Obama to immediately approve the use of 12 percent ethanol (E12) in the nation's fuel supply.

The fuel market in the United States is nearly saturated with the allowable amount of ethanol, a 10 percent blend as mandated by the U.S. Environmental Protection Agency. This arbitrary blend level assigned by EPA represents a barrier to market access, commonly called the "blend wall." The blend wall will soon prevent fuel retailers from using enough ethanol to satisfy congressional requirements within the Renewable Fuels Standard of the Energy Independence and Security Act of 2007.

"We hope President Obama will direct the U.S. EPA to immediately allow for E12 in the U.S. fuel supply," said Tim Lenz, a farmer from Strasburg, and president of the Illinois Corn Growers Association. "Every day that goes by with the 10 percent blend wall means another day lost toward less dependence on foreign oil. Every day that goes by is a day lost in what could be an immediate stimulus to this country's rural economies."

Ethanol is a factor in the Galesburg and west-central Illinois economy. The ribbon-cutting ceremony for Big River Resources, a $172 million plant in Galva, took place Sept. 14, 2009. Plans announced at that time were for 100 million gallons of ethanol to be produced annually at the Henry County plant. There also is an ethanol plant in the Henry County community of Annawan, northeast of Galva.

The letter to the president said the effect on rural America will be considerable if no change is made in ethanol regulations.

"The result is job losses and a devastating impact on America's rural economy as plants struggle to cover their debt requirements, and stifle investments in new technologies and efficiencies that would otherwise continue," according to the letter to President Obama.

According to the letter, ethanol has been a major cog in the rural economic machinery.

"The ethanol industry has been a major economic engine for our rural areas, benefitting farmers, equipment manufacturers, agri-businesses, local and state governments, petroleum marketers and consumers," the letter continued. "Unfortunately, the ethanol industry is facing some very difficult times because the EPA places an arbitrary barrier that impedes access of ethanol to the gasoline market."

These sentiments were echoed and expanded upon by Lenz.

"This isn't just corn farmers and ethanol interests supporting a move to E12. When you see independent gasoline retailers signing on to this effort it's an indication of a strong coalition of broad-based support. If it's good for consumers, it's good for the gasoline retailers. A move to E12 is good for farm communities, it's good for the environment, it's good for cash-strapped drivers," he said.

The requested move to E12 is an interim step as EPA considers a waiver request to allow E15, a fuel blend of 15 percent ethanol and 85 percent petroleum-based gasoline, according to a news release from the Illinois Corn Growers Association. A decision on that request is now nearly nine months overdue. The signors of the letter to President Obama believe that conclusive evidence exists proving that increasing the ethanol blend from 10 to 12 percent has no negative effects on automobile performance. Furthermore, they anticipate EPA's eventual science-based approval of E15 fuel blends.

The signors to the letter include representatives from the Illinois Corn Growers Association, Illinois Renewable Fuels Association, Growmark, Center Oil Company, Aventine Renewable Energy, Qik N EZ Convenience Stores, Illinois Farm Bureau, ADM, and Hucks Food and Fuel.

The signatures of Lenz and Raymond E. Defenbaugh, president of the Illinois Renewable Fuels Association and president and CEO of Big River Resources, which also has an ethanol plant in West Burlington, Iowa, were the top ones on the letter.

John R. Pulliam, business editor of The Register-Mail, contributed to this story.