Higher ethanol blends are on federal agenda
The latest federal energy act, passed last December, requires more ethanol to be produced than the United States could consume even if all cars on the road used E10 (a 10-percent ethanol blend sold in most urban areas), and the six-million or so flexible-fuel vehicles (FFVs) in the country actually ran on E85 (85-percent ethanol). In reality, very few FFVs use E85, because it is not available in most areas. And it’s more expensive than gasoline. (We reported on this in “Ethanol - the challenges with too much of a good thing.”)
This week, the federal government planted another stake in the ground on its way to building up the ethanol infrastructure to match ethanol production mandates. The Energy Department and USDA released its Action Plan (PDF) to meet the expanded production, distribution, and sales targets in the December 2007 Energy Independence and Security Act. The biggest development is a stated policy to increase the use of so-called “intermediate blends” of ethanol, such as E20 and E30 (20 percent ethanol/80 percent gasoline and 30 percent ethanol/70 percent gasoline, respectively). Since ethanol contains less energy than gasoline, this is likely to result in lower fuel economy for all cars running on E20 and E30.
Other targets include:
• Producing new machinery to harvest new materials to make cellulosic ethanol.
• Research and development to reduce the costs of producing ethanol from non-food products.
• Considering the effects of increased production of biofuels on food supplies and animal feed.
• Studying and building out the ethanol distribution network, including analyzing the feasibility of building dedicated ethanol pipelines from the Midwest to the East and West coasts.
• Studying the health effects of increased ethanol use, including air, water, and soil quality.
These are only some of the problems we have found with ethanol. Despite its lower fuel economy, automakers can receive fuel economy credits for building FFVs. Therefore, most FFVs are large vehicles that get poor fuel economy even on gasoline, and worse fuel economy on E85. So, ironically, fuel economy credits may be increasing overall petroleum consumption in the U.S. Those fuel economy credits are scheduled to phase out 10 years from now in 2019.
As the road to widespread ethanol usage continues to be paved, we will continue to report here on the latest developments.
Learn more about alternative fuels in our guide to driving green .











