EPA Announces E15  Partial Waiver
                  Decision  and  Fuel Pump Labeling
                  Proposal
                      The Environmental Protection Agency (EPA) is partially granting
                      a waiver to allow gasoline that contains greater than 10 volume
                  percent ethanol and up to 15 volume percent ethanol (E15) for use
                  in certain motor vehicles. We are partially approving the waiver for
                  and allowing the introduction into commerce of El5 for use only in
                  model year 2007 and newer light-duty motor vehicles, which includes
                  passenger cars, light-duty trucks and sport utility vehicles (SUV). We
                  are not approving the waiver for introduction of E15 for use in model
                  year 2000 and older light-duty motor vehicles, as well as all heavy-
                  duty gasoline engines and motor vehicles, highway and off-highway
                  motorcycles, and nonroad engines, vehicles, and equipment ("nonroad
                  products" such as lawn mowers, chainsaws and boats) because there
                  is currently insufficient test data to support an E15 waiver approval
                  for these vehicles, engines, and products. The Agency is deferring a
                  decision on the applicability of a waiver to model year 2001 through
                  2006 light-duty motor vehicles until additional test data, currently
                  under development, is available.

                  This waiver decision includes certain conditions to reduce the po-
                  tential for misfueling of E15 into vehicles, engines, and products for
                  which it is not approved and to ensure fuel and ethanol quality. In
                  addition, EPA is concurrently issuing a proposed rule with the express
                  purpose of reducing the potential for misfueling of E15 into vehicles,
                  engines, and products for which it is not approved. If finalized, this
                  rule will satisfy the misfueling mitigation conditions of today's partial
                  waiver.
SEPA
United States
Environmental Protection
Agency
Office of Transportation and Air Quality
                EPA-420-F-10-054
                   October 2010

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E15 Waiver Decision
In March 2009, Growth Energy and 54 ethanol manufacturers petitioned the Environmental
Protection Agency ("EPA" or "The Agency") to allow the introduction into commerce of up to
15 volume percent (vol%) ethanol in gasoline. In April 2009, EPA sought public comment on
the Growth Energy petition and subsequently received about 78,000 comments. Prior to today's
action, ethanol was limited to 10 vol% in motor vehicle gasoline (E10). While E15 is only 5%
more ethanol than E10 when considering the total fuel portion, moving from El0 to El5
represents a 50% increase in the volume of ethanol present in gasoline and thus represents a
50% increase in the use of renewable fuels in gasoline.

The petition was submitted under Clean Air Act section 211(f)(4), which allows an applicant
to demonstrate that a new fuel or fuel additive will not cause or contribute to the failure of an
emission control system to achieve compliance with the emission standards to which it has been
certified over its useful life. EPA reviewed the applicant's submission based on four criteria: 1)
immediate and long term tailpipe emissions 2) immediate and long term evaporative emissions,
3) materials compatibility, and 4) driveability and operability.
MY2007 and Newer Vehicles
EPA's waiver decision allows but does not require the use of El5 in MY2007 and newer cars,
light-duty trucks, and SUVs. This decision is based primarily on the Department of Energy's
(DOE) Catalyst Study of 19 high sales volume car and light-duty truck models that were all
designed for and subject to the Tier 2 motor vehicle emission standards. The purpose of the
program was to evaluate the long-term effects of EO (gasoline that contains no ethanol and
is the certification test fuel for emissions testing), E10, E15, and E20 (a gasoline-ethanol
blend containing 20 vol% ethanol) on the durability of the exhaust emissions control system,
especially the catalytic converter (catalyst), for Tier 2 motor  vehicles. Analysis of the motor
vehicles' emissions results at full useful life (120,000 miles) and emissions deterioration
rates showed no significant difference between the EO and E15 fueled groups. These results
confirm EPA's engineering assessment that the changes manufacturers made to their vehicles
(calibration, hardware, etc.) to comply with EPA's Tier 2 emission standards have resulted in the
capability of these vehicles to fuel with E15. The Tier 2 standards were fully phased-in for cars
and light trucks by MY2007.
MY2001-2006 Motor Vehicles
EPA is deferring a decision on MY2001-2006 light-duty motor vehicles. DOE is in the process of
conducting additional catalyst durability testing that will provide data regarding MY2001-2006
motor vehicles. The DOE testing is scheduled to be completed by the end of November 2010,
EPA will make the DOE test results available to the public and consider the results and other
available data and information in making a determination on E15 for use in those model year
motor vehicles. EPA expects to make a determination for these vehicles shortly after the results
of DOE testing are available.

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MY2000 and Older Motor Vehicles and All Motorcycles, Heavy-Duty
Gasoline Engines and Motor Vehicles, and Nonroad Products
We are not approving the waiver for MY2000 and older light-duty motor vehicles, as well as all
heavy-duty gasoline engines and motor vehicles, highway and off-highway motorcycles and non-
road products because there is currently insufficient test data to support an E15 waiver approval
for these vehicles, engines,  and products,

MY2000 and older motor vehicles have much less sophisticated emissions control systems than
newer motor vehicles. At this time, there is insufficient data to demonstrate that the use of
El5 will not cause or contribute to the failure of these motor vehicles to meet the emissions
standards to which they were certified. In EPA's judgment, MY2000 and older motor vehicles
may experience conditions  that lead to emission increases if operated on El5. These concerns
include the potential for catalyst deterioration or catalyst failure, as well as materials compat-
ibility issues that could lead to elevated exhaust emissions and  exceedances of the standards. For
motorcycles and nonroad products, there are additional concerns with the use of E15,
Conditions on the Waiver
There are two types of conditions being placed on today's partial waiver: those for mitigating
the potential for misfueling of E15 in all vehicles, engines and equipment for which E15 is not
approved, and those addressing fuel and ethanol quality.

Conditions to reduce the potential for misfueling include the following:
   •   Parties involved in the manufacture and sale of El5, which include renewable fuel
       producers and importers, petroleum refiners and importers, and ethanol blenders, must
       submit a plan addressing the conditions of today's waiver to EPA for approval
   •   Retail fuel dispensers must have labels indicating that El5 is only for use in MY2007 and
       newer motor vehicles
   •   Product Transfer Documents (PTDs) must accompany all transfers of fuels for E15 use
   •   Parties must participate in a survey of compliance at fuel retail dispensing facilities to
       ensure adequate enforcement of labeling requirement,
   •   These conditions are also included in today's proposal as EPA believes these conditions
       are more practically met through rulemaking requirements.

For fuel quality purposes, El5 must meet ASTM International standards for ethanol. In addition,
its Reid Vapor Pressure is limited to 9.0 pounds per square inch so that MY2007 and newer motor
vehicles can meet evaporative emissions standards with El5 during the summertime gasoline
volatility season (generally May 1 - September 15),

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Notice of Proposed Rulemaking (NPRM) to Reduce the Potential for
Misfueling
EPA is concurrently proposing a regulatory program to promote the successful introduction of
El5 into commerce by ensuring that El5 is used in approved motor vehicles and reducing the
potential for the misfueling of E15 into vehicles and engines for which it is not approved. The
proposal includes several provisions that parallel the misfueling conditions on the El5 partial
waiver. The proposed rule would:
   •  Prohibit the use of gasoline-ethanol blended fuels containing greater than 10 vol% and
      up to 15 vol% ethanol in vehicles and engines not approved for it
   •  Require all fuel dispensers to have a label if a retail station chooses to sell E15, and it
      seeks comment on separate labeling requirements for blender pumps and fuel pumps that
      dispense E85
   •  Require PTDs specifying ethanol content and RVP to accompany the transfer of gasoline
      blended with ethanol
   •  Require a national survey of retail stations to ensure compliance with the labeling
      provisions

In addition, the proposed rule would modify the Reformulated Gasoline ("REG") program by
updating the Complex Model to allow fuel manufacturers to certify batches of gasoline contain-
ing up to 15 vol% ethanol,

EPA is proposing the following El5 label:
                              CA     ION
                                  Use only in:
                        2007 and newergasoline cars
                       2007 and newer light-duty trucks
                               Flex-fuel vehicles
                   This fuel might da mage other vehicles.
                    Federal law prohibits its use in other
                  L	vehicles and engines.	

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Cost of Compliance of the Rule
The cost to industry to comply with the labeling proposal includes the periodic capital costs of
labeling fuel dispensers, the one-time cost of the product transfer document requirements, and
the annual cost of the survey requirements. The cost of the proposed labeling requirements is
estimated at $1.04 million per year on an annualized basis. The cost of the proposed product
transfer document requirements is estimated at $0.56 million per year on an annualized basis.
The cost of the proposed survey requirements is estimated at $2.05 million per year. The total
cost of all of the proposed requirements is estimated at $3.65 million per year. We believe these
costs to industry will be offset by the avoided costs to consumers of repairing engines, vehicles,
and equipment that would otherwise potentially have been damaged by misfueling.
Public Participation Opportunities
We welcome your comments on this proposed rule. Comments will be accepted for 60 days
beginning when this proposal is published in the Federal Register. All comments should be identi-
fled by Docket ID No. EPA-HQ-OAR-2010-0448 and submitted by one of the following methods:

          Internet: www.regulations.gov
          E-mail: A'and'R'Docket@epa.gov
          Mail:
             Environmental Protection Agency
             Air and Radiation Docket and Information Center (6102T)
             1200 Pennsylvania Avenue NW
             Washington, DC 20460
          Hand Delivery:
             EPA West Building
             EPA Docket Center (Room 3340)
             1301 Constitution Avenue NW
             Washington, DC
For More Information
You can access the rule and related documents on EPA's Office of Transportation and Air Quality
(OTAQ) Web site at:

          www.epa.gov/otaq/regs/fuels/additive/e 15

For more information, please contact EPA's Fuels Program at:

          U.S. Environmental Protection Agency
          Office of Transportation and Air Quality (6405J)
          1200 Pennsylvania Avenue NW
          Washington, DC 20460
          202-343-9755
          E-mail: epafuelsprograms@epa.gov

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