2014 is nearly over, but we won't know how much ethanol the U.S. EPA will require to be blended into gasoline for 2014, until 2015. The EPA announced last week it will delay issuing the standard.
The ethanol industry and refining industry are on opposite sides of the Renewable Fuels Standard debate. The RFS requires increasing amounts of ethanol in gasoline every year, unless there are compelling economic reasons to depart from the practice.
Earlier this year, the EPA indicated it was planning to lower the Renewable Fuels Standard for the first time since 2007 – because it appeared the amount of ethanol in gasoline would have to exceed 10% – and the effect of higher ethanol blends on older engines is unclear.
The delay on issuing that standard has generated relief among corn ethanol lobbyists.