July 22, 2010

Ethanol debate heats up

So many things going on in the US ethanol market day after day, it's driving me nuts! (I'm writing an ethanol article this week...)

First of all, the ethanol industry is in a tizzy over the ticking 45c./gal subsidy which is set to expire at the end of the year. Second, the Environmental Protection Agency (EPA) has been delaying its decision whether to lift the cap on the 10% ethanol blend (E10) in gasoline to 15% (E15).

The agency was originally expected to rule on the issue in December 2009, but postponed the decision, pressured by car manufacturers and the oil industry, which claim that more ethanol in gasoline could interfere with vehicle performance and void warranties.

The group FollowTheScience.org released a statement yesterday calling on Congress to require thorough and objective scientific testing of ethanol in automobiles before allowing an increase in the amount of ethanol in gasoline.

The group includes the Environmental Working Group; Natural Resources Defense Council; The Hispanic Institute; Engine Manufacturers Association; International Snowmobile Manufacturers Association; Motorcycle Industry Council; National Marine Manufacturers Association; Outdoor Power Equipment Institute; American Frozen Food Institute; American Meat Institute; Grocery Manufacturers Association; Snack Food Association; American Petroleum Institute; National Association of Truck Stop Operators; and National Petrochemical & Refiners Association.

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