Ethanol Mandate Battle Heats Up

Detroit Free Press - March 23, 2013

The ongo­ing bat­tle between oppo­nents and advo­cates over how much corn-oil to add to Amer­i­can gas tanks leads more toward a war of words than an actu­al solu­tion.

Get the lat­est on the 2007 ethanol man­date.

Oppo­nents say man­dates to increase the amount of the renew­able fuel in the nation’s gaso­line sup­ply could add bil­lions of dol­lars to Amer­i­can dri­vers’ fuel bills. And con­gres­sion­al lead­ers plan to take a sec­ond look at a 2007 law that man­dates ethanol.

Under the 2007 law, the nation is increas­ing ethanol use in vehi­cles to 15.2 bil­lion gal­lons this year, up from 5 bil­lion gal­lons in 2007. By 2022, the U.S. must use 36 bil­lion gal­lons of bio­fu­els, with 21 bil­lion gal­lons of that from advanced cel­lu­losic ethanol made from sources oth­er than corn.

The Amer­i­can Petro­le­um Insti­tute, which is the oil industry’s lob­by­ing arm, says the ris­ing man­dates by 2015 could boost the price of diesel fuel 300 per­cent and hike gas prices 30 per­cent. It says the cur­rent jump in prices for ethanol cred­its could add 10 cents to the price of a gal­lon of E10 (which is 10 per­cent ethanol) at the pump.

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