NACS, SIGMA Tell EPA That E10 Mandate Is Unnecessary

NACS and SIGMA communicated the industry's opposition to a petition filed by small engine makers to require all motor fuels retailers to sell E10 or lower fuels.

May 31, 2011

ALEXANDRIA, VA - Last week NACS and SIGMA filed comments with the Environmental Protection Agency to communicate the industry€™s opposition to a petition by small engine makers to require all motor fuels retailers to sell E10 or lower fuels.

The comments point out four reasons why mandating retailers to sell gasoline blends of less than or equal to E10 is unnecessary:

  1. Not all retailers will be able to sell E15. Retailers who choose to sell E15 would be exposed to a variety of risks, primarily because the proposed regulation could in certain situations leave retailers €" even those who comply with the labeling requirements €" exposed to claims of liability for damages caused by consumer misfueling.

  2. Not all retailers will be able to sell E15. Retailers who store and sell EI5 using existing infrastructure (i.e., dispensers and tanks) could violate any number of federal, state and local statutes or regulations pertaining to equipment compatibility certification and local fire codes, not to mention tank insurance policies and stipulations contained in bank loans extended to petroleum retail facilities.

  1. Once EPA finalizes the proposed regulation, there will still be a substantial quantity of cars on the road that are prohibited from refueling with greater than E10 blends (vehicles that are model year 2000 and earlier). Currently, approximately 35 percent of cars on the road are model year 2000 and earlier. It is not in retailers€™ interest to refrain from selling products desirable to this segment of the market.

  2. Once El5 becomes legal for use in model year 2001 and newer vehicles, it is far from certain that owners of such vehicles will choose to refuel with El5 rather than less than or equal to E10. Unlike prior fuel transitions (i.e., leaded to unleaded gasoline and low sulfur to ultra-low sulfur diesel fuel), no vehicle is required to run on fuel containing more than 10 percent ethanol. Consequently, demand for this product is purely subject to the voluntary decision-making process of individual consumers.

Read more of the comments.

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