Washington, D.C. —
Senator Thune led a bi-partisan group of Senators in writing a letter to the President urging him to direct the Environmental Protection Agency (EPA) to approve higher blends of ethanol in commercial gasoline. The current maximum blend for non-flex fuel vehicles is 10% ethanol.
"The current 10% standard, or blend wall, will soon impact production capacity and could be very harmful to the ethanol industry in South Dakota and across the country," said Thune. "By increasing the percentage of ethanol in gasoline, we can reduce our dependence on foreign sources of energy and make renewable fuels a key component of our nation's energy policy."
Over the past months, Senator Thune has met with the President and a number of Administration officials to highlight the urgency of this situation. Additionally, Senator Thune successfully inserted into the Senate 2007 Farm Bill a study of the E10 blend wall and a "Sense of the Senate" resolution directing the federal government to approve higher blends of ethanol after the successful completion of the appropriate drivability and environmental studies.
Senator Thune has taken an active role with both the Farm Bill and the Energy Bill to expand the market for domestic ethanol. The total market demand for E10 ethanol is expected to be 12 to 14 billion gallons. Current U.S. ethanol production capacity totals approximately 6.8 billion gallons per year. Ethanol plants currently under construction or expansion will double this figure in the next 18 to 24 months, creating a need for higher blends of ethanol in the near future.
Click here to view a PDF of the letter. The text of the letter follows.
President George W. Bush
The White House
Washington, DC 20500
Dear Mr. President:
We write to you regarding the future of our nation's renewable energy sector. In particular, we want to bring your attention to the very real barriers that exist to greater use of alternative fuels by the general motoring public. Without your assistance, we feel that a great opportunity will be missed to reduce our nation's dependence on foreign sources of energy.
We recognize and thank you for your strong leadership in promoting renewable fuels as a key component of our nation's energy policy. Your leadership, coupled with significant legislative accomplishments in Congress and historic private sector innovation and investment, has created a strong and growing renewable fuels industry that is creating jobs throughout America and strengthening our nation's energy security.
Current U.S. ethanol production capacity totals approximately 6.8 billion gallons per year. Ethanol plants currently under construction or expansion will double this figure by adding almost 6.7 billion gallons of capacity in the next 18 to 24 months, for a total of roughly 13.5 billion gallons. Additionally, you have called for and the Senate has acted upon a higher Renewable Fuels Standard in the recently passed Energy bill that would require 36 billion gallons of renewable fuel in the coming years.
As additional production comes on-line, the U.S. ethanol industry is increasingly mindful about the short-term market demand for ethanol. Domestic ethanol production is quickly approaching the maximum market demand for E10 (10 percent ethanol and 90 percent gasoline), which is projected to be 12 to 14 billion gallons of ethanol per year. At this production level, the blend market for ethanol will become fully supplied. While it is difficult to predict precisely when the ethanol industry will saturate the blend market and hit the "E10 Blend Wall," the federal government must now begin the testing process to approve higher ethanol blends and ensure that demand for ethanol keeps pace with industry expansion. If we fail to act now, excess production capacity could have harmful effects on the overall ethanol industry - not to mention a missed opportunity to further reduce our current dependence on foreign sources of energy.
In addition to an increased Renewable Fuels Standard, Congress and the Administration must work together with the ethanol, automotive, and small engine industries to begin the process of approving intermediate blends of ethanol blended gasoline for non-flex fuel vehicles. Upon the successful completion of the appropriate emissions, drivability, and compatibility tests in variable climate conditions, we ask that you direct the Environmental Protection Agency to approve appropriate higher blends of ethanol (such as E15, E20, and E30) in a safe and timely manner following all required scientifically-based testing, and in conjunction and coordination with other relevant federal agencies and private sector industries.
We thank you for your time and consideration of this request and for your continued support for America's renewable fuels industry.
"The current 10% standard, or blend wall, will soon impact production capacity and could be very harmful to the ethanol industry in South Dakota and across the country," said Thune. "By increasing the percentage of ethanol in gasoline, we can reduce our dependence on foreign sources of energy and make renewable fuels a key component of our nation's energy policy."
Over the past months, Senator Thune has met with the President and a number of Administration officials to highlight the urgency of this situation. Additionally, Senator Thune successfully inserted into the Senate 2007 Farm Bill a study of the E10 blend wall and a "Sense of the Senate" resolution directing the federal government to approve higher blends of ethanol after the successful completion of the appropriate drivability and environmental studies.
Senator Thune has taken an active role with both the Farm Bill and the Energy Bill to expand the market for domestic ethanol. The total market demand for E10 ethanol is expected to be 12 to 14 billion gallons. Current U.S. ethanol production capacity totals approximately 6.8 billion gallons per year. Ethanol plants currently under construction or expansion will double this figure in the next 18 to 24 months, creating a need for higher blends of ethanol in the near future.
Click here to view a PDF of the letter. The text of the letter follows.
President George W. Bush
The White House
Washington, DC 20500
Dear Mr. President:
We write to you regarding the future of our nation's renewable energy sector. In particular, we want to bring your attention to the very real barriers that exist to greater use of alternative fuels by the general motoring public. Without your assistance, we feel that a great opportunity will be missed to reduce our nation's dependence on foreign sources of energy.
We recognize and thank you for your strong leadership in promoting renewable fuels as a key component of our nation's energy policy. Your leadership, coupled with significant legislative accomplishments in Congress and historic private sector innovation and investment, has created a strong and growing renewable fuels industry that is creating jobs throughout America and strengthening our nation's energy security.
Current U.S. ethanol production capacity totals approximately 6.8 billion gallons per year. Ethanol plants currently under construction or expansion will double this figure by adding almost 6.7 billion gallons of capacity in the next 18 to 24 months, for a total of roughly 13.5 billion gallons. Additionally, you have called for and the Senate has acted upon a higher Renewable Fuels Standard in the recently passed Energy bill that would require 36 billion gallons of renewable fuel in the coming years.
As additional production comes on-line, the U.S. ethanol industry is increasingly mindful about the short-term market demand for ethanol. Domestic ethanol production is quickly approaching the maximum market demand for E10 (10 percent ethanol and 90 percent gasoline), which is projected to be 12 to 14 billion gallons of ethanol per year. At this production level, the blend market for ethanol will become fully supplied. While it is difficult to predict precisely when the ethanol industry will saturate the blend market and hit the "E10 Blend Wall," the federal government must now begin the testing process to approve higher ethanol blends and ensure that demand for ethanol keeps pace with industry expansion. If we fail to act now, excess production capacity could have harmful effects on the overall ethanol industry - not to mention a missed opportunity to further reduce our current dependence on foreign sources of energy.
In addition to an increased Renewable Fuels Standard, Congress and the Administration must work together with the ethanol, automotive, and small engine industries to begin the process of approving intermediate blends of ethanol blended gasoline for non-flex fuel vehicles. Upon the successful completion of the appropriate emissions, drivability, and compatibility tests in variable climate conditions, we ask that you direct the Environmental Protection Agency to approve appropriate higher blends of ethanol (such as E15, E20, and E30) in a safe and timely manner following all required scientifically-based testing, and in conjunction and coordination with other relevant federal agencies and private sector industries.
We thank you for your time and consideration of this request and for your continued support for America's renewable fuels industry.