The Climate Report - Winter 2011

On November 4, 2010, U.S. EPA partially granted ethanol producers' request for a Clean Air Act waiver allowing use of gasoline containing up to 15 percent ethanol by volume, known as "E15." While the application sought a waiver for use of E15 across the board, EPA granted the waiver only with respect to model year 2007 and newer light-duty motor vehicles, because those vehicles have more sophisticated emissions control systems. In addition, EPA's testing showed that when used with E15, emissions deterioration rates over the useful life of the vehicles were not significantly different than when used with gasoline containing no ethanol. EPA rejected the waiver with regard to model year 2000 and older light-duty motor vehicles, heavy-duty motor vehicles, motorcycles, and non-road products, because such vehicles and products have less sophisticated emissions control systems that may not meet emissions standards if used with E15.

On November 9, 2010, various food, restaurant, meat, and petroleum associations filed a petition for review in the U.S. Court of Appeals for the District of Columbia Circuit. Grocery Mfrs. Ass'n v. U.S. Envtl. Prot. Agency, No. 10-1380 (D.C. Cir.). The petitioners argue that the waiver is premature, because the testing is insufficient to show that use of E15 will not cause or contribute to the failure of emissions control devices, and that EPA lacks statutory authority to grant the partial waiver.

Growth Energy, the ethanol producers' trade association that applied for the E15 waiver, has moved to intervene in partial support of EPA, stating that while it "reserves the right to challenge certain aspects of the EPA's waiver decision, it has a direct and substantial interest in defending the grant of a waiver and the EPA's authority to grant a waiver in the circumstances of this case." Motion of Growth Energy for Leave to Intervene at 4, Grocery Mfrs. Ass'n v. U.S. Envtl. Prot. Agency, No. 10-1380 (D.C. Cir. Dec. 6, 2010). The industry petitioners do not oppose the motion, and EPA has indicated that it will take no position.

Two more challenges to the waiver have been filed recently: Alliance of Automobile Manufacturers v. EPA, No. 10-1414 (D.C. Cir.), and Petrochemical & Refiners Assn. v. EPA, No. 11-1002 (D.C. Cir.). Procedural motions are due January 14, 2011, and dispositive motions are due January 28, 2011.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.