Monday, November 9, 2009

The Pending Blend Decision

Reuters is reporting today that the EPA decision on the amount of ethanol that can be blended into gasoline may be delayed beyond the previously announced date of December 1. According to the article, EPA director Lisa Jackson indicated that the agency may need more time to evaluate the effect of a blend increase on all types of gasoline-powered engines.

The blend increase--to 15% from the current 10%--was requested by the ethanol industry in March. Among the primary opponents of the proposal are U.S. automakers, who say that the high moisture content of corn-based ethanol can degrade engine performance. Proponents have argued that these claims are exaggerated and point out that the 25% blend ratio in Brazil has not been shown to have detrimental effects on internal combustion engines in use there.

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