Mandating E15 is a bad idea for Chicago’s drivers and station owners, Illinois Petroleum Council (IPC) Executive Director Jim Watson said after the finance committee passed the measure Monday. He urged the City Council to reject the misguided policy.
“A mandate forcing Chicago gas stations to sell E15 gasoline could come with a heavy price for consumers and small business owners,” Watson said. “Consumers who use E15 could end up with broken down cars and high repair bills. And since E15 doesn’t qualify for the 20 percent state sales tax exemption and ethanol contains less energy than gasoline, filling up with E15 could be more expensive while lowering gas mileage.”
While E10 – gasoline with 10 percent ethanol – is in widespread use, extensive testing shows that 15 percent ethanol (E15) can cause engine and fuel system damage, according to Coordinating Research Council’s (CRC) testing (here and here). AAA says 95 percent of vehicles on the road today were not designed to use E15 gasoline, and auto manufacturers have said they will not honor warranties when E15 causes damage.
“Complying with the mandate could cost Chicago gas station owners upwards of $100,000 to install new storage tanks and other equipment,” Watson said. “That’s a huge burden for a sector in which 94 percent of service stations are independently owned and operated. This is bad government at the expense of Chicago drivers.”
Groups representing motorcyclists, boat manufacturers and power equipment like lawnmowers and chainsaws warn their products are also not compatible with E15, according to Watson.
The IPC represents all sectors of Illinois’ oil and natural gas industry, supporting more than 263,000 jobs and $33 billion of the state’s economy as a result of operations involving pipeline construction, oil refining, marketing of transportation fuels and research in the New Albany Shale formation.
The IPC is a division of API, which represents all segments of America’s oil and natural gas industry. API’s more than 600 members produce, process, and distribute most of the nation’s energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy.
