More Ethanol Coming to Your Gas
The EPA approval will please growers and others in the industry. Drivers, less so.
The Environmental Protection Agency will give a thumbs-up for a 50% increase in the amount of ethanol that can be blended into the fuel supply, but don’t expect it to have much effect on gasoline prices.
The agency will approve the increase for cars built after 2007 as early as September and for all cars built after 2001 in November -- as more test results come in -- so the full effect of the move won’t be felt until 2011. That will give service stations plenty of time to adapt. Most states will likely offer E15 -- 15% ethanol and 85% gasoline -- in addition to the ubiquitous E10. Also available in more places is E85, which is specially blended for flexfuel vehicles that can use any blend up to that level.
The increase is being pushed by Growth Energy and other ethanol lobbying groups, which say the industry is already confronting the “blend wall” -- the point at which ethanol blending is at the 10% level. In 2009, ethanol accounted for 8.8% of the fuel supply in the U.S. This year, for the first time, ethanol companies have begun to export ethanol in significant quantities because not all of the product can be used domestically.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Ethanol currently sells for about $1.55 per gallon on the spot market, 47¢ under the price of gasoline with which it is blended. Plus blenders receive a federal tax credit of 45¢ per gallon. But since ethanol produces about 30% less energy than gasoline does, the price differential is unlikely to have a big effect on gasoline prices at the pump.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
New 2026 Income Tax Brackets Are Set: What to Know Now
Income Tax The IRS has adjusted federal income tax bracket ranges for the 2026 tax year to account for inflation. Here's what you need to know.
-
Claiming the Standard Deduction? Here Are Five Tax Breaks for Retirement in 2025
Tax Tips If you’re retired and filing taxes, these five tax credits and deductions could provide thousands in relief (if you qualify).
-
Apple Readies for AI Upgrade with New iPhones
The Kiplinger Letter The tech giant has stumbled when it comes to artificial intelligence, but a new batch of iPhones will help it make headway.
-
Japan Enters a New Era of Risk and Reform
The Kiplinger Letter Japan has entered a pivotal moment in its economic history, undertaking ambitious policy and structural reforms to escape from decades of stagnation.
-
How Consumers Are Tinkering with Cutting-Edge AI
The Kiplinger Letter Companies launching artificial intelligence tools are jostling for consumer attention. Some products are already building a deep connection with users.
-
After Years of Stagnant Growth, Hope Emerges for EU Economy
The Kiplinger Letter Can a German fiscal push outweigh French political peril?
-
Small Businesses Are Racing to Use AI
The Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
How AI Puts Company Data at Risk
The Kiplinger Letter Cybersecurity professionals are racing to ward off AI threats while also using AI tools to shore up defenses.
-
AI Start-ups Are Rolling in Cash
The Kiplinger Letter Investors are plowing record sums of money into artificial intelligence start-ups. Even as sales grow swiftly, losses are piling up for AI firms.
-
What is AI Worth to the Economy?
The Letter Spending on AI is already boosting GDP, but will the massive outlays being poured into the technology deliver faster economic growth in the long run?