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EPA Proposal For 2014 Renewable Fuel Standard Reduces Ethanol Mandate

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E85
An E85 pump is seen at the BP Station in Reynolds, Ind. Thursday, Feb. 21, 2008. This one-stoplight farming hamlet had big dreams in 2005 when it was christened BioTown USA. Since then, money problems, leadership changes and other obstacles have sparked skepticism that Reynolds will ever succeed at moving the state, much less the nation, toward homegrown energy and away from foreign oil. (AP Photo/Tom Strickland) | ASSOCIATED PRESS

WASHINGTON (AP) — The Obama administration wants to reduce the amount of ethanol in the nation's fuel supply, acknowledging the biofuel law championed by both parties in 2007 is not working as well as expected.

The new proposal announced Friday is unlikely to mean much for consumers at the pump. It could, however, cut into farmers' profits for corn, the primary ethanol source.

The change would require almost 3 billion fewer gallons of biofuel to be blended into gasoline in 2014 than the law mandates.

Since 2007, people are driving less and fuel economy has improved. Meanwhile, next-generation biofuels have not taken off as expected.

Under current plans, the amount of biofuel required would generate more ethanol than many engines can safely handle.

The oil industry lobbied hard for the reduction.

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