Regulators Refuse to Ease Ethanol Rule

The U.S. Environmental Protection Agency has rejected a request from eight states and 200 members of Congress to ease a federal mandate that requires steadily increasing use of ethanol in gasoline, The Detroit News reports.

The Renewable Fuel Standard enacted in 2007 requires America's transportation sector to boost its uses of biofuels, thereby reducing its consumption of petroleum.

The RFS mandates that biofuel use rise from 13.2 billion gallons this year to 15 billion by 2015 and 36 billion gallons by 2020. Today virtually all bulk biofuel is in the form of ethanol made from corn. The RFS dictates that suppliers derive more than half their ethanol from non-food plant materials by the end of the decade.

The News notes that corn prices have quadrupled since the biofuel mandate began. Not surprisingly, corn farmers and the ethanol industry support the rule. But beef and pork producers claim the standard, coupled with last summer's drought, will drive up food costs.

Gasoline containing 10% ethanol (E10) is widely available in the U.S. now. Late last year the EPA ruled that a 15% blend would be safe for vehicles build after the 2000 model year. But the agency did not require fuel suppliers to switch to E15 or even offer it.

Carmakers continue to complain that ethanol at concentrations higher than 10% might damage engines and fuel systems.