NAFA Welcomes EPA Proposal Regarding RFS and E-15 Fuel

NAFA Fleet Management Association said it welcomes the U.S. Environmental Protection Agency’s proposal to ease the renewable volume obligations for ethanol in the renewable fuel standard (RFS) for 2014. EPA’s proposal addresses the concerns of the Association and fleet managers that the approaching blend wall for ethanol would result in the mandated use of E-15, a fuel level that many vehicle fleet managers fear would void vehicle warranties, damage engines, and cause damage to underground storage tank systems.

"E-15 is an issue we have been following closely," explained NAFA’s Executive Director Phillip E. Russo, CAE. "NAFA retains legislative counsels in Washington, DC, and Ottawa, Canada to follow issues that could affect fleets, such as the E-15 situation. Many vehicles currently on the road and used in businesses throughout the country by our Members, were simply not made to operate on gasoline higher than E10. The warranty issue is very real and has been raised by several auto manufacturers in conversations with our legislative team. In addition, with respect to underground storage tank systems, there are no tank or components currently available that have been certified as compatible with E-15. Due to issues such as these, NAFA provided comments to the House Energy and Commerce Committee earlier in the year as background for their review of the RFS."

NAFA has long supported federal environmental and energy policies, including the RFS that reach the entire motoring public and return benefits to fleets and the general public. An assessment of the RFS is appropriate as the use of alternative fuels has increased and fuel efficiency standards and fuel economy measures have reduced gasoline use nationwide. For fleets, fuel is often the single most important operating cost. As such, fleets are constantly adopting strategies to reduce fuel use and improve vehicle efficiencies.

"Although fleet managers strongly support protecting and sustaining our environment, the potential difficulties and related expenses that will result by introducing E-15 before it is fully evaluated will outpace our ability to address the mechanical problems that will result," Russo continued. "Further, fuel costs will increase because of the decreased energy content delivered per gallon. As a major consumer of vehicles and engines, we are concerned with the potential impact on both light-duty engines, as well as non-covered engines, including engine failure, corrosion, materials incompatibility, catalyst degradation, water-in-fuel and phase separation, higher exhaust temperatures, increased pollution emissions, andreduced life of the vehicle or engine.

"Nobody fights harder for fleets than we do," said Russo. "In an era in which many organizations are cutting back, we are working harder than ever. Our legislative team is growing and becoming more aggressive in our efforts to ensure that the voices of fleet managers are heard. We are the eyes and ears of fleet management, and we’re proud to be in this position."

NAFA Fleet Management Association
125 Village Blvd., Suite 200
Princeton, NJ 08540

Telephone: 609.720.0882 Fax: 609.452.8004