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US GAO Asked to Study Impact of Higher Ethanol Blend

Republican representatives Joe Barton (TX-6) and Greg Walden (OR-2) asked the Government Accountability Office (GAO) on Wednesday to study the impact of boosting the amount of ethanol that is blended into U.S. gasoline supplies.  The request comes in response to U.S. EPA’s announcement that it will likely approve an increase in the federal ethanol blending limit to 15 percent next summer.

According to the lawmakers:

Congress may consider whether the federal government should assume liability for costs associated with increasing ethanol blends.  It is imperative that Congress have some measure of the potential costs of infrastructure and liability risks, should higher blends be mandated.

The “costs” and “risks” the lawmakers refer to include voided automakers’ warranties should gasoline with more than 10 percent ethanol (the current blending limit) is used and engine damage in lawn mowers, boats, chain saws and small tractors caused by higher ethanol blends.  The lawmakers also asked GAO to analyze the economic challenges of building pipelines dedicated to moving ethanol supplies from the Midwest to the East and West coasts.

The Renewable Fuels Association, the trade group that represents ethanol producers, has called on the EPA to immediately approve gasoline with 12 percent ethanol while the agency reviews the data for the much higher 15 percent blend.

More information is available here.

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