Today is the deadline for the US Environmental Protection Agency to announce a decision concerning blending levels for ethanol in gasoline.
The current limit for ethanol blending is 10%.
Growth Energy, a trade group of ethanol producers, has asked for an increase allowing up to 15% blending to give a boost to the struggling industry.
However, it has been a hugely divisive issue drawing opposition from the auto industry and those who do not want to see additional food crops converted to fuel.
Federal law mandates the production of 36 billion gallons of ethanol by 2022, including 15 billion gallons this year. However, demand for those gallons has been weaker than expected.
A Bloomberg report suggests that the EPA may increase the blending limit to 11%. A St. Louis Post-Dispatch report said a raise in blending limits will have little effect on demand outside the cornbelt.
Read that report at the link below.
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