Ethanol debate: Is your car ready for E-15?

Politicians from Iowa are pushing for that to change.

Earlier this week, newly appointed U.S. Secretary of Agriculture Tom Vilsack and U.S. Senator Tom Harkin, D-Iowa, spoke in support of allowing higher blends -- 15 percent.

Harkin, the chairman of the Senate Agriculture Committee, also requested the Environmental Protection Agency (EPA) to act soon to increase the blend limit.

In addition, Iowa's Secretary of Agriculture Bill Northey, along with other states' agriculture secretaries from the Midwest, petitioned President Barack Obama earlier this month to accept 15 or 20 percent ethanol blends.

"Ethanol has proven to have a positive impact on the American economy by creating more jobs, increasing domestic production and adding a larger tax base," Northey said in a statement released from his office last week. "It is important we take the next step to expand the industry by increasing the current ethanol blend of 10 percent, to 15 or 20 percent."

In the agriculture secretaries' joint letter to Obama, they pointed out the Energy Independence and Security Act of 2007 required 36 billion gallons of ethanol be blended into the U.S. domestic fuel supply by 2022.

The cap of 10 percent blend, they argued, is hindering reaching that goal.

Raising that level would also help the nation's ethanol industry, which is struggling, they added.

If the EPA approves blending 15 percent of ethanol into petroleum, the possible market could double -- surpassing 18 billion gallons, according to Kiplinger Business Resource Center.

Dave Hoffman, president of Plymouth Energy, the ethanol plant north of Merrill, is vocally supportive of increasing the blend level to 15-20 percent.

"It would be positive No. 1 for the environment," Hoffman said. "For every 1 percent of ethanol we add, it reduces emissions."

Increasing allowable ethanol levels would also be positive for Iowa, he said.

"It would increase the demand for corn; it would help farmers," Hoffman said.

He's also pushing for government regulations that would require new vehicles to be equipped as flex-fuel vehicles that could run on higher ethanol blends.

"It only costs $100 per vehicle and it allows consumers to have the choice," he said.

However, lobbyists representing livestock owners and food producers are resisting the change to a higher blend cap. They see it as impacting the price they pay for corn for their livestock and products.

Some disagree. According to a 2007 study by the U.S. Department of Energy, 97 percent of food price increases had nothing to do with

ethanol.

Another concern with raising the ethanol blend level is that some cars may not be able to handle a higher blend of ethanol.

Under current regulations, car warranties are only viable if fuel with 10 percent or less ethanol are used unless the vehicle is a flex-fuel vehicle.

Some proponents of the change have suggested applying the switch only to cars made after a certain year.

Iowa Sen. Randy Feenstra said he strongly supports the ethanol industry but still believes the government should proceed with caution.

"I'm in support of looking at legislation if it's best for the customers, the vehicle owners," Feenstra said. "You have to balance that with using and promoting our agricultural resources."

"We also want to keep ethanol based gas cheaper than gas without ethanol because it gets less mileage," he said, adding there is a balance when allowing ethanol to be blended with gasoline.

Blending ethanol is already saving consumers money, according to a 2008 study by the U.S. Department of Energy.

Gasoline prices would be 20 to 35 cents higher per gallon today without ethanol, the study found. However, that savings is slightly less due to the decreased mileage with ethanol-blended fuels.

EPA officials are waiting to make their call on raising the ethanol blend cap until they have further research on air emissions, but they have the immediate option to increase the maximum blend to 12 or 13 percent.