CARD analysis: Overcoming the blend wall with E85

A report published by Iowa State University’s Center for Agricultural and Rural Development has demonstrated that the U.S. could meet the renewable fuel standard’s (RFS) statutory 2014 volume requirements through greater use of E85. While no additional infrastructure investments would be needed in the form of additional E85 fueling locations, the price of E85 would have to be priced moderately lower and the use of carry-over renewable identification  numbers (RINs) would be required. 

In 2015, the report predicts that the statutory RFS volume requirements could be met through a combination of additional E85 stations and moderately lower E85 prices. In addition to helping meet RFS requirements, the analysis predicts adding E85 locations would reduce the price of RINs. 

The report, titled “Feasibility and Cost of Increasing U.S. Ethanol Consumption Beyond E10,” was authored by ISU economists Bruce Babcock and Sebastien Pouliot.