Trouble for Illinois Biofuels

Amid a regional push to allow for E15 fuel usage year-round, E10 usage could be in danger during the coming summer.

E10, a blend of 90% gasoline with 10% ethanol, is often used in the winter, but isn't allowed in the summer due to federal EPA rules. In recent years, midwestern states have been issued waivers to continue to use the biofuel blends in the summer months, but the president has previously stated he wants a permanent solution.

Many agriculture groups have pushed to allow not only E10 usage year-round, but also E15, which uses a 15% blend of ethanol. Industry experts say the switch to year-round E-15 could increase demand for corn by 2 billion bushels per year. Illinois is consistently ranked as the second-largest corn-producing state, meaning a switch to a higher blend would be a major boost to the economy.

So far, the Governor's administration has joined the call for year-round E15 usage, but hasn't requested the usual waiver for summer-time E10 usage.

Farmers have been calling on the Governor to request the waiver in case year-round E-15 isn't approved federally. If no E10 waiver is granted, and E15 isn't given the green light, many industry experts say it could cause gas prices to increase this summer.