California Energy Commission Recommends 10 Percent Ethanol Blend, NCGA Notes (12-7-05)

The National Corn Growers Association (NCGA) is encouraged by a report released by the California Energy Commission (CEC) that calls for a 10 percent average renewable fuels content standard for the state’s gasoline pool.

The CEC will submit the report, the “2005 Integrated Energy Policy Report,” to Gov. Arnold Schwarzenegger.

“We have turned the corner from worrying about opt outs in California to meeting its citizens’ demand for a clean, homegrown energy,” said NCGA Ethanol Committee Chairman Bruce Noel. “We must position ourselves as growers to rise up and invest and supply this ever-growing market. We welcome the challenge.”

California is the nation’s largest ethanol market, with more than 900 million gallons of ethanol blended into the gasoline pool annually. Much of the state’s gasoline currently contains 5.7 percent ethanol, which is used to help meet California’s clean air standards. If the state approves a 10 percent minimum, up to 1.575 billion gallons of ethanol would be used in California every year.

Though the Energy Policy Act of 2005 eliminated the oxygenate requirement for California, the CEC said there is no indication from refiners that they will reduce ethanol blending levels in the state.

The commission also recommended developing E85-compatible fuel-dispensing systems for the state and easing the permitting process for E85, a blend of up to 85 percent ethanol. The report also suggested that California look into requiring a portion of the new cars sold in the state be flexible fuel vehicles, which are manufactured to burn E85.

To view the CEC report, click here.