EPA increases amount of ethanol in U.S. fuel supply

The Environmental Protection Agency (EPA) has issued a rule to increase the levels of ethanol blended with gasoline through 2016 as part of the new Renewable Fuel Standard (RFS).

According to the new regulation, fuel suppliers will be required to blend 16.93 billion gallons of ethanol and other renewable fuels into gasoline for 2015, and 18.11 billion gallons for 2016, reported the Chicago Tribune.

The agency stated the new ethanol production requirements are a response to the increase in U.S. fuel demand since May. It also means that there will be a higher percentage of home-produced fuel in the market.

Biodiesel standards will grow steadily over the next several years, increasing every year to reach 2 billion gallons by 2017.