By Jim Snyder - 03/17/10 07:27 PM EDT
Ethanol groups like Growth Energy and the Renewable Fuels Association have lobbied the administration and Congress to allow higher levels of ethanol be blended with gasoline. The current threshold is 10 percent, which ethanol producers contend functions as a cap on their market.
EPA and the Energy Department are studying whether to raise the ethanol “blend wall” beyond 10 percent. Ethanol makers contend higher blend limits will create thousands of jobs and spur additional investment in follow-on fuels that offer more benefits than corn-based ethanol. They dispute the contention that higher ethanol blends would damage engines or raise food prices.