By: Theresa Zeidler-Shonat, AccuVal Associates, Inc. In recent
years, ethanol has become the preferred additive to oxygenate
fuel, a process that makes gasoline friendlier on the
environment by burning more completely. Federal law requires the
sale of oxygenated fuels in certain carbon monoxide non-
attainment Metropolitan Statistical Areas (''MSAs'') during at
least four winter months, typically November through February.
The process of using ethanol as an oxygenator was developed more
than a century ago but surged in popularity during the past
decade when another oxygenator, Methyl Tertiary Butyl Ether
(MTBE), was banned by many states due to environmental concerns.
Ethanol's popularity has since been buoyed by subsidies and
favorable environmental regulations, but the industry has become
very dependent on these policies. And it may be facing new
challenges ahead. In 2005, the U.S. established its first
renewable fuel volume mandate, requiring a minimum level of
biofuels be blended with gasoline. The origina