Allowable Ethanol Blend to Rise to 15 Percent

The Wall Street Journal reports that the Environmental Protection Agency (EPA) "plans to announce it will allow ethanol levels in gasoline blends to be as high as 15% for vehicles made since 2007, up from 10% currently."

The EPA is waiting to assess the outcome of additional research for cars made between 2001 and 2006.

Some will be critical of this decision including livestock ranchers, auto makers and and oil refiners.  The decision, however, "comes as the Obama administration is under criticism by some Farm Belt lawmakers for what they say are overly burdensome regulations from the agency."

The EPA "plans to also solicit comments on how gasoline pumps should be labeled, so as to avoid or reduce the potential that drivers will put the wrong fuel into their cars."

The "ethanol industry has lobbied to boost the blend limit because holding the current 10 percent standard would limit the size of the U.S. ethanol industry to somewhere between 13 billion gallons and 13.5 gallons, depending on gasoline demand.  But the industry has construction projects underway that would boost its annual capacity beyond 13.5 billion gallons in a matter of months."

To read the Wall Street Journal story, click here.

Posted: 10/13/2010