Feed&Grain.com |

In March the ethanol industry petitioned the Environmental Protection Agency to raise the limit on ethanol in gasoline to as much as 15%, up from the current cap of 10%.

Ethanol groups told the agency that the 10% limit was “a primary reason” for the industry’s recent slump. Agriculture Secretary Tom Vilsack endorsed raising the cap to 12% to 13%.

Environmental agency officials have said that the 10 percent limit has not hit the industry yet but that the cap will make it difficult to meet the nation’s annual usage mandates in coming years. The agency has been struggling with how to legally justify raising the limit, given unanswered questions about the impact of the increased ethanol content on engines, boats and outdoor equipment.

Obama stated he would make the ultimate decision about increasing the ethanol cap, which he said would involve “reconciling a lot of different issues.”