• Been tried several time in years past (was called “gasahol”)
• Never caught on in past due to high cost to manufacture ethanol
• EPA Clean Air Act of 1995 mandates use of ethanol, justified as cleaner burning with less emissions
Renewal fuel thought to reduce imports of crude oil
Refineries required to produce 12 percent of sales as E-10 (in 2009 – may go up annually)
• Ethanol currently limited to 10 percent by volume (except E-85 gas for “Flex” vehicles)
• Smaller refineries exempt until 2012 (less than 150,000 barrels/day and less than 1,500 employees)
• Not used in past due to high cost to manufacture ethanol
• Large government subsidy to ethanol industry now makes it affordable to refineries and consumers. Of course, you and I, the taxpayers pay for these subsidies to the Ethanol plants.
