EPA boosts amount of ethanol in gasoline supply
WASHINGTON - The Obama administration is boosting the amount of corn-based ethanol and other renewable fuels in the U.S. gasoline supply. That's despite sustained opposition by an unusual alliance of oil companies, environmentalists and some GOP presidential candidates.
The Environmental Protection Agency on Monday announced a rule to increase production of ethanol to be blended with gasoline through 2016, a decision that could reverberate in Iowa's crucial presidential caucuses. While some candidates have supported higher levels of renewable fuels, conservatives like Texas Sen. Ted Cruz call the government's longtime support for ethanol "corporate welfare."
The decision doesn't necessarily mean a higher percentage of ethanol in an individual driver's tank, and isn't likely to have much effect on gas prices. But it does mean there will a higher supply of the home-grown fuel overall.