Broad Coalition of Industry Groups Protest Biofuel Expansion

A broad and diverse coalition of industry groups sent a letter to the EPA, the Department of Energy, the Department of Agriculture, and the White House to protest the planned expansion of biofuels in consumer gasoline. Currently, the EPA allows a 10% of gasoline sold to consumers to be subsidy-driven ethanol, a biofuel meant to reduce dependency on oil imports and reduce grain surplus issues in the American farming industry. This same product, which is less powerful and slightly cleaner burning gasoline, has been found to damage gasoline engines. Small engines are the most commonly damaged variety, including snowmobiles, lawnmowers, boats, motorcycles, and compact cars.

The protesting group, which includes the Alliance of Automobile Manufacturers, the National Association of Convenience Stores, and the Engine Manufacturer's Association, among others, urges the EPA to return to the research behind biofuel before forcing it on consumers. In their letter, the group says that even if the EPA's only concern was the future prosperity of the currently subsidized biofuel industry, more research should be completed to ensure that public opinion of ethanol fuels isn't tarnished by engine failures related to the substance.

While the EPA does not require that all consumer gasoline be sold as a 90/10 mixture with ethanol, it is subsidized in such a way that it is less expensive than an ethanol-free fuel, putting gas stations and truck stops at a competitive disadvantage if they choose not to carry ethanol blended gasoline. Some states, like Oregon, passed green laws forbidding the sale of ethanol-free gasoline, though Oregon's law was revised to allow premium gas as an exception after backlash from consumers.

Virtually every automobile manufacturer added biofuel mixtures in excess of 10% as a violation of the vehicle warranty, possibly to prevent damage or to head off the possibility of future legislation. Agriculture groups and farmers are already in support of expanded biofuel use, as according to the Department of Agriculture, 25% of the corn grown in the United States eventually ends up in a gas tank. Secretary of Agriculture Tom Vilsack believes a 20% ethanol blend is safe and sensible, and could make a meaningful impact in existing corn and grain reserves. Toyota, an auto manufacturer known for making small-engined, fuel efficient cars, has already recalled over 200,000 vehicles in their Lexus brand due to problems related to ethanol-blended fuel.

Letter to Jackson Chu Browner 1-6-2010