Ag Policy Blog

Chicago to Consider E15 Mandate

Todd Neeley
By  Todd Neeley , DTN Staff Reporter
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Ethanol interests are holding out hope the Chicago City Council may soon pass a new city ordinance that would require all 400-plus retail gasoline stations in the city to sell E15. One industry source told DTN the city may vote on the E15 Clean Air Ordinance at the council's May 6 meeting.

For several years since the U.S. Environmental Protection Agency approved a waiver for vehicles 2001 and newer to use E15, the ethanol industry has faced roadblocks in convincing retailers to offer the blend. Primarily those companies that sell E15 are independent retailers. Ethanol industry groups in recent months released information alleging that large oil companies have made it difficult for their retailers to sell E15, for fear of violating franchise agreements.

In addition, the oil industry has from day one has expressed concerns that retailers could face potential legal liability for mis-fueling at their stations.

E15 is considered to be an important potential market to help the ethanol industry push past the E10 blend wall, where total ethanol production exceeds a 10% market. And if commercial cellulosic ethanol production is expected to replace corn-based ethanol as the primary biofuel in the country, the budding industry will need somewhere to sell its product. E15 would provide that market at least initially.

Here is the proposed city of Chicago ordinance in its entirety:

"WHEREAS, the City of Chicago is a home rule unit government pursuant to the 1970 Illinois Constitution, Article VII, Section 6(a); and

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"WHEREAS, pursuant to its home rule power, the City of Chicago may exercise any power and perform any function relating to its government and affairs including the power to regulate for the protection of the public health, safety, morals, and welfare; and

"WHEREAS, the City of Chicago is dedicated to reducing fuel costs, improving local air quality, reducing petroleum usage, and mitigating greenhouse gas emissions from motor vehicles; and

"WHEREAS, E15 is a blend of gasoline and up to 15 volume percent ethanol; and WHEREAS, ethanol is a renewable domestic fuel that burns cleaner than gasoline; and

"WHEREAS, Illinois is the third largest ethanol producing state in the nation, with 14 ethanol plants that can produce 1.5 billion gallons of ethanol per year; and WHEREAS, the United States Environmental Protection Agency has approved the use of E15 in cars of the model year 2001 or later; and

"WHEREAS, E15 is significantly less expensive than conventional gasoline, with expected savings between 5 and 15 cents per gallon; and WHEREAS, according to the Argonne National Laboratory, higher blends of ethanol reduce the greenhouse gas emissions of motor fuel by an average of 34% compared to conventional gasoline; and WHEREAS, transportation accounts for 21% of all greenhouse gas emissions in the city; and

"WHEREAS, the City Council of the City of Chicago intends to ensure that that the city's public fueling infrastructure provides access to alternative fuels; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:

"SECTION 1. The above recitals are expressly incorporated herein and made part hereof as though fully set forth herein.

"SECTION 2. Chapter 4-108 of the Municipal Code of Chicago is hereby amended by adding a new Section 4-108-76, as follows: 4-108-76 Self-service filling station E15 consumer choice – Required.

"(a) E15 Dispensing Equipment Required. Every licensee operating a self-service filling station open to the general public shall make available, at each filling station, self-service dispensing equipment that dispenses mid-grade E15 for use in motor vehicles and motor vehicle engines and shall offer mid-grade E15 for sale.

"(b) Definitions. As used in this section: 'Mid-grade E15' shall mean a gasoline-ethanol blend with an 88 octane rating or higher that contains greater than 10.0 volume percent ethanol and not more than 15.0 volume percent ethanol.

"(c) Exemptions. The requirements of this section shall not apply to: (1) a filling station at which the average annual volume of fuel sales is less than 500,000 gallons; or (2) a filling station at which the underground storage tanks are not compatible with the storage of blended fuel in accordance with Section 175.415 of Chapter I of Title 41 of the Illinois Administrative Code, as amended, codified at 41 111. Adm. Code 175.415.

"SECTION 3. This ordinance shall be in full force and effect 180 days after passage and publication."

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