From Power Equipment Trade Magazine.com

Before the sale of E15 gasoline can be widely implemented, more federal research and administrative action is needed, particularly concerning consumer safety and the environmental and component impact that increased ethanol gasoline blends have on retailers’ underground storage tanks (USTs), according to a U.S. Congressional General Accounting Office (GAO) report just released.

The report identified three main challenges to widespread E15 retail sales, despite the EPA’s 2010 approval of E15 (15% ethanol blended into gasoline) as a standard transportation fuel for autos 2001 and newer:

• Compatibility—Federally sponsored research indicates that intermediate blends (gasoline with ethanol percentages higher than E10) may degrade or damage some materials used in existing UST systems and dispensing equipment, potentially causing leaks. Important gaps exist in current research efforts: None of the planned or ongoing studies on UST systems test actual components and equipment, such as valves and tanks, and no additional research is currently planned.
• Cost—Due to concerns over compatibility, new storage and dispensing equipment may be needed to sell intermediate blends at retail outlets. The cost of installing a single-tank UST system compatible with intermediate blends is more than $100,000. In addition, the cost of installing a single compatible fuel dispenser is over $20,000.
• Liability—Since EPA has only allowed E15 for use in model year 2001 and newer automobiles, many fuel retailers are concerned about potential liability issues if consumers misfuel their older automobiles or nonroad engines with E15.

The report noted that the EPA, federal Dept. of Energy (DOE) and a nonfederal organization have provided about $51 million in funding for 10 studies on the effects of intermediate blends on automobiles and nonroad engines, including effects on performance, emissions and durability. Of these studies, five will not be completed until later in 2011. Results from a completed study indicate that such blends reduce a vehicle’s fuel economy (i.e., fewer miles per gallon) and may cause older automobiles to experience higher emissions of some pollutants and higher catalyst temperatures. Results from another completed study indicate that such blends may cause some nonroad engines to run at higher temperatures and experience unintentional clutch engagement, which could pose safety hazards.

Officially, the report made two recommendations:

• The Secretary of Labor should direct the Assistant Secretary for Occupational Safety and Health to issue guidance clarifying how OSHA’s safety regulations on fuel-dispensing equipment should be applied to fuel retailers selling intermediate ethanol blends.
• To reduce uncertainty about the potential environmental impacts of storing intermediate ethanol blends at retail fueling locations, the Administrator of the EPA should determine what additional research, such as research on the suitability of specific UST components, is necessary to facilitate a transition to intermediate ethanol blends, and work with other federal agencies to develop a plan to undertake such research.

A complete copy of the report can be found here.