The path to energy independence is not for the faint of heart. In the words of President Woodrow Wilson, "If you want to make enemies, try to change something."

The ethanol industry knows this lesson all too well after a tumultuous 2008. Our foes spent tremendous sums of money attempting to discredit us. But we never let a lie go unchallenged, and as we begin the New Year our critics realize that we are a force to be reckoned with.

However, challenges remain, and we must confront them head on. Our industry has faced a triple economic threat posed by fluctuating ethanol prices, a credit crunch and volatile commodity prices. While there is uncertainty, there is also reason for optimism. Corn prices have retreated, and in survey after survey a large majority of Americans continue to support cleaner sources of energy.

With production outpacing demand, it will be crucial for the blend wall to be increased. The current regulatory cap is 14 billion gallons per year. If E10 was blended into all U.S. gasoline it would require something closer to 12 billion gallons per year. The blend wall creates two problems. First, it makes it difficult to reach the goal of 36 billion gallons of renewable fuels use that was set in the 2007 energy bill. Second, by holding down prices, it stymies growth—not just for corn-based ethanol, but also cellulosic ethanol.

The Renewable Fuel Standard (RFS) program not only provides a foundation for the industry but the promise of long-term stability. However, the 10 percent regulatory cap on the amount of ethanol that can be blended into gasoline places the RFS at risk. The industry is seeking approval for mid-level blends to increase the regulatory cap.
Preliminary studies on increased blends have proved promising. Test results on vehicles have revealed that tailpipe emissions were similar to E10 blends, and informal observations proved that drivability was unchanged.

While E85 infrastructure has yet to meet the demand of flexible-fuel vehicle (FFV) owners, the Ethanol Promotion and Information Council has helped lay the groundwork for
increasing the regulatory cap on the amount of ethanol blended into ordinary pumps.

New blender pumps that offer drivers varying levels of ethanol are becoming common at fuel retailers in the Midwest. The ability of consumers to choose higher blends of ethanol hinges on the availability of blender pumps, particularly as the number of FFVs continues to increase. The ethanol industry's blender pump program supports the installation of fuel dispensers that offer a combination of at least two mid-range blends such as E20, E30 or E40, in addition to E85. The program got its start in South Dakota with help from the South Dakota Corn Utilization Council. The state now has 45 blender pumps. Active blender pump programs are also underway in Kansas, Missouri, Iowa and Minnesota.

Our robust grain-based ethanol industry is setting the stage for the coming generation of advanced biofuels. The industry is fueling research into technologies that will improve the production of cellulosic ethanol from feedstocks such as switchgrass, crop waste and other renewable biomass. However, the incentive to push for these new technologies may be at risk if we cannot push for higher blends at the pump.

In support of these goals, EPIC plans to join the recently announced Growth Energy, a nonprofit organization comprised of ethanol producers and industry partners. The public policy organization aims to influence elite opinion makers inside the Beltway and increase consumer awareness nationally with public relations and marketing initiatives. Now is a critical time to push the cause of alternative fuels.

Toni Nuernberg is the executive director of the Ethanol Promotion and Information Council. Reach her at tnuernberg@epicinfo.org or (402) 932-0567.