Last Updated: April 07. 2011 1:02PM
Auto companies speak out against fed ethanol proposal
David Shepardson / Detroit News Washington Bureau
Washington- A group representing major automakers told a Senate panel this morning that the industry opposes a proposal to require nearly all vehicles to run on a high blend of ethanol by 2016.
The Alliance of Automobile Manufacturers - the trade association representing General Motors Co., Ford Motor Co., Chrysler Group LLC, Toyota Motor Corp. and eight others - opposes a bill sponsored by Sen. Tom Harkin, D-Iowa, that would require 90 percent of all vehicles to run on E85 - a blend of 85 percent ethanol - by the 2016 model year
Shane Karr, vice president for government affairs, said the mandate "would cost consumers more than $2 billion per year" for flex fuel vehicles if automakers passed on the full cost "even though consumers will have little or no access to alternative fuels. Therefore, such a mandate is essentially a tax with little consumer benefit."
Harkin's bill was introduced in January and has three co-sponsors from corn-producing states: Sens. Al Franken, D-Minn.; Tim Johnson, D-S.D.; Amy Klobuchar, D-Minn.
Karr noted that 8.2 million flex-fuel vehicles are already on the roads, but less than 2 percent of gas stations sell the fuel - and most are clustered in the Midwest.
Bob Dineen, president and CEO of the Renewable Fuels Association, noted that flex-fuel vehicles account for just 3 percent of the nation's fleet.
"Obviously we have a long way to go if consumers are to be given the flexibility to maximize their use of domestic renewable fuels like ethanol. Efforts to expand (flex-fuel vehicle) technology must be a part of our energy future," he told the panel.
The other issue automakers face is that today's flex fuel vehicles don't comply with state emissions standards. California plans to require all vehicles to meet the most stringent standards - a move that could raise the price of a flex-fuel vehicle.
About 90 percent of all fuel sold at the pump is E10 - or 10 percent ethanol - and all vehicles can run on the blend.
Automakers have been fighting over the extent of ethanol use.
The Environmental Protection Agency has approved the sale for E15 for vehicles from the model year 2001 and newer. The agency shortly plans to finalize labeling rules, which will allow it to be sold at the pump.
Automakers and others have filed suit to block the new fuel from being sold, raising concerns that the blend could damage vehicle engines.
But Karr said "automakers would commit to a dialogue with Congress and the appropriate federal agencies to discuss making" future vehicles capable running at a higher level than E10.
Automakers are worried about lawsuits that may come from misfueling after a higher blend of ethanol is offered. "Consideration should be given for appropriate liability protection that would stem from misfueling," Karr said.
Sen. Debbie Stabenow, D-Lansing, chairman of the Agriculture Committee, said ethanol is a key part of reducing dependence on foreign oil. "We need American homegrown energy," she said.
dshepardson@detnews.com
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From The Detroit News:
http://detnews.com/article/20110407/AUTO01/104070463/Auto-companies-speak-out-against-fed-ethanol-proposal#ixzz1IwmTRoZF
