Actually, the theory was that replacing MTBE in Gasoline with ethanol would not be as financially dangerous to the entire gasoline industry.
We do not have 'high levels' of ethanol in gasoline for the purpose of reducing oil imports.
The ENTIRE reason for the wide spread use of ethanol in gasoline was SOLELY to meet EPA REGULATIONS regarding oxygenate contents in gasoline - regulations that were NEVER legislated into law.
MTBE, made easily from natural gas, was the previous primary oxygenate, not a carcinogen, not toxic, but tastes very foul at even the parts per billion range when ground water is contaminated (sunlight exposure quickly breaks this compound down into harmless byproducts). Groundwater contamination can occurs anytime a vehicle accident breeches a gas tank, from the underground pipes at filling stations when they have corrosion problems, or from tankers involved in accidents.
The THREAT OF LITIGATION over these minute spills and extremely low levels of contamination were a ruinous hammer being held over the heads of the Gasoline Industry. MTBE was ONLY being added to gasoline due to FEDERAL GOVERNMENT MANDATE on oxygen content - and the FEDERAL GOVERNMENT absolutely refused to indemnify the industry against the potential litigation. Hyup - a real 'moral' government there.
So, the entire industry unanimously quit using MTBE - and switched to ethanol for oxygenate content.
YES, there was a very small amount of 'gasohol' on the market prior to this - under the theory of 'green energy' - but the overwhelming reason for ethanol in gasoline today has not a single thing to do with attempts to reduce 'oil imports' or the 'building of new refineries'.
Finally, brethren, whatsoever things are true, whatsoever things are honest, whatsoever things are just, whatsoever things are pure, whatsoever things are lovely, whatsoever things are of good ...
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