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With the EPA’s decision on November 16 to deny requests that the RFS mandate be waived in light of hardship caused by this year’s drought, attacks against the Renewable Fuel Standard have anything but decreased.
On November 30, AAA released the results of a survey it conducted, finding that 95% of respondents had never heard of E15 and, according to AAA, were therefore at risk to damage their cars by filling up with it.
The press release from AAA goes on to suggest that the auto industry has found E15 to be largely useless; in part it reads as follows.
“Unsuspecting consumers using E15 could end up with engine problems that might not be covered by their vehicles? warranties. Five manufacturers (BMW, Chrysler, Nissan, Toyota and Volkswagen) are on record saying their warranties will not cover fuel-related claims caused by the use of E15. Eight additional automakers (GM, Ford, Honda, Hyundai, Kia, Mazda, Mercedes-Benz and Volvo) have stated that the use of E15 does not comply with the fuel requirements specified in their owner?s manuals and may void warranty coverage.
“The only vehicles currently approved by automakers to use E15 are flex-fuel models, 2001 model-year and newer Porsches, 2012 model-year and newer GM vehicles and 2013 model-year Ford vehicles. These approvals extend only to cars, light-duty trucks and medium-duty passenger vehicles (SUVs). The use of E15 is expressly prohibited in heavy-duty vehicles, boats, motorcycles, power equipment, lawn mowers and off-road vehicles.”
This information is directly contrary to EPA’s suggestions, which do not discriminate on make or model of vehicle, so long as it is a car, light-duty truck or medium-duty SUV with a model year of 2001 or newer.
In response to AAA’s message, RFA President and CEO Bob Dinneen notes the miles driven on the fuel equate to 12 round trips to the moon and back without a single failure. In Dinneen’s opinion, AAA should report enthusiastically about ethanol?s consumer gasoline price savings, which are measured in real numbers, according to an updated study authored by professors at the University of Wisconsin and Iowa State University. They found that ethanol reduced wholesale gasoline prices by a national average of $1.09 per gallon in 2011. The savings in the Midwest were even greater at $1.69 per gallon.
Another study was released following the EPA denial of waiver requests; on November 29, the National Council of Chain Restaurants released information allegedly revealing that the RFS mandate would cost chain restaurants between $3.2 billion and $503 million in 2015. The release of the study immediately caused a backlash from the ethanol industry.
Iowa Corn Growers Association Director of Governmental Relations Mindy Larsen-Poldberg says the effect of the RFS on commodity prices is secondary, if not tertiary, compared to other costs incurred in getting food from farm to fork.
In fact, Larsen-Poldberg says the numbers in the report reflect a positive trend for buyers over the next ten years.
