Ethanol industry has EPA as ally in battle against Big Oil

Drama is high these days for ethanol makers, whose fate is on the line in Washington -- fitting for an industry dependent on government.

The oil industry has launched an assault on the ethanol mandate that drives demand for the plant-based fuel. The Senate recently confirmed an industry friend to head the Environmental Protection Agency. And the EPA is finalizing a controversial rule to allow higher blends of ethanol in gasoline.

Ethanol is a fuel made from fermenting and distilling plant matter -- mostly corn in the U.S. From the industry's earliest days, government has subsidized the fuel. The most important benefit for the industry today is the Renewable Fuel Standard.

The 2005 Republican-passed energy bill created the RFS, known as the "ethanol mandate," and the 2007 Democrat-passed energy bill expanded it. Under the law, oil refiners must purchase a set quantity of ethanol every year.

READ MORE:  http://washingtonexaminer.com/ethanol-industry-has-epa-as-ally-in-battle-against-big-oil/article/2533290?custom_click=rss