By James M. Griffin -- January 23, 2014
[Editor note: This post is taken from a new policy brief, The Latest Unanticipated Consequence in the Ethanol Fiasco, released by the Mosbacher Institute for Trade, Economics, and Public Policy at Texas A&M University. Professor Griffin, who directs the Mosbacher Institute, is also author of U.S. Ethanol Policy: Time to Reconsider? in The Energy Journal (Fall 2013).]
- The 2007 mandates to steadily increase ethanol content in gasoline have hit yet another roadblock.
- Falling — instead of rising — gasoline consumption means that fuel blenders can no longer absorb the mandated ethanol quantities and still produce gasoline with no more than 10% ethanol content.
- Auto manufacturers strongly object to raising the ethanol content above 10%.
- Now, the EPA has proposed a one-time, one year waiver relaxing the 2014 mandate.