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EPA Considers Raising Ethanol Limit for Gasoline

The Environmental Protection Agency was expected to rule by the end of September on whether to allow gasoline retailers to increase the maxium amount of ethanol in their gas mixtures from 10 to 15%.

Currently, gasoline sold in California contains about 5.7% ethanol.  But Chris Knittel, Associate Professor of Economics at UC Davis, said "there are laws on the books that are going to require the U.S. to sell more and more ethanol each year."   Corn farmers and ethanol producers are also pushing hard for the change.

Environmental groups, the auto industry, and the oil industry are all opposed to the increase. "This is one of those strange type bedfellow situations,"  said Roland Hwang, transportation program director of the Natural Resources Defense Council.

Hwang said the higher ethanol content gas, named E-15, could wreak havoc on older vehicles.  "Older vehicles and any other piece of gas-powered equiptment you can think of:  lawnmowers, outboard motors, cannot handle E-15 without having pollution problems,"  Hwang warned.

The EPA was reportedly considering limiting E-15 for just newer cars, but Hwang claimed that isn't a solution, and would lead to confusion at the gas pump.  "People misfuel all the time," he said.

A trade organization for ethanol producers insisted the higher ethanol gas is safe for all vehicles.

(© 2010 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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