Here is a prime example of what can happen when Congress and the administration tamper with the free market system to impose their will on the American public. Simply put, their meddling can create major headaches for consumers.

At issue is the government's attempt to force-feed ethanol into the nation's gasoline pool. As reported by Reuters, "cellulosic production has not grown as rapidly as Congress had hoped." As a result, the Environmental Protection Agency (EPA) is proposing to lower the cellulosic mandate by 93 to 98 percent below the 250 million gallons set by Congress for 2011.

At the same time, however, the congressional mandate is forcing the need for higher amounts of ethanol in gasoline. To respond to the mandate, EPA is promoting a new fuel - gasoline blended with 15 percent e... more »

Agriculture Secretary Tom Vilsack today announced a new multi-million dollar program to promote the production of and demand for biofuels. His announcement came on the heels of the Environmental Protection Agency's (EPA) approval of E15, a fuel blend containing up to 15 percent ethanol.

According to a news release, the program will create a base of new, non-food, non-feed biomass crops to meet future demand for renewable energy. "The Obama administration is aggressively supporting our nation's farmers, ranchers and producers of biofuels as they work to bring greater energy independence to America," Vilsack said.

A reporter who attended the Secretary's speech at the National Press Club says Vilsack also called on Congress to give the ethanol industry a short-term subsidy extension and annou... more »

Here's a classic case of putting the cart before the horse, or in this case approving a new fuel before it's adequately tested.

The Office of Management and Budget (OMB) is reviewing a proposal to affix new E15 labels on gasoline pumps. The problem is that until scientific studies on E15 are completed, no one knows what the labels should say. The labels are part of an Environmental Protection Agency (EPA) plan that could increase the amount of ethanol sold in gasoline.

As we've explained previously, at present gasoline may contain up to 10 percent ethanol (E10). But Growth Energy, which represents ethanol producers, has filed a petition asking EPA to approve fuel containing up to 15 percent ethanol (E15).

A Growth Energy spokesperson calls OMB's review of the labeling proposal "definitely... more »

Why is the Environmental Protection Agency (EPA) in such a hurry to grant a waiver allowing E15 to be sold in the marketplace?

E15 is a fuel blend containing 15 percent ethanol and 85 percent gasoline. At present, only blends containing up to 10 percent ethanol are permitted, but ethanol producers are pushing for higher ethanol content. EPA has indicated it will make a decision on E15 this fall, despite the fact that scientific research on the fuel won't be completed until 2011.

Now a new study urges caution, saying that the introduction of this new fuel blend is more complicated than it might appear on the surface. The study, conducted by Sierra Research and commissioned by API, says:

"There are many changes that need to be made to federal, state, and local requirements as well as issues... more »

If you fill up your own gasoline tank, you've probably seen the signs on gasoline pumps that read: "This product may contain up to 10 percent ethanol."

Ethanol, which in the United States is usually derived from corn, adds octane to gasoline and is considered an excellent additive in levels of 10 percent or less. But now the Environmental Protection Agency (EPA) is mulling a plan that could permit blends of up to 15 percent ethanol, called E15.

Sounds like a simple way to put more home-grown fuel into the nation's gasoline mix, right? Not necessarily.

Ethanol is a highly corrosive material, and concerns have been raised about its effect on vehicle fuel lines, underground gasoline storage tanks and gasoline dispensers. Studies are underway to determine the safety of E15 and similar blends,... more »