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Once-Darling Ethanol Losing Friends In High Places 586

theodp writes "It's now conceivable, says BusinessWeek's Ed Wallace, that the myth of ethanol as the salvation for America's energy problem is coming to an end. Curiously, the alternative fuel may be done in by an unlikely collection of foes. Fervidly pro-ethanol in the last decade of his political career, former VP Al Gore reversed course in late November and apologized for supporting ethanol, which apparently was more about ingratiating himself to farmers. A week later, Energy Secretary Steven Chu piled on, saying: 'The future of transportation fuels shouldn't involve ethanol.' And in December, a group of small-engine manufacturers, automakers, and boat manufacturers filed suit in the US Court of Appeals to vacate the EPA's October ruling that using a 15% blend of ethanol in fuel supplies would not harm 2007 and newer vehicles. Despite all of this, the newly-elected Congress has extended the 45 cent-per-gallon ethanol blending tax credit that was due to expire, a move that is expected to reduce revenue by $6.25 billion in 2011. 'The ethanol insanity,' longtime-critic Wallace laments, 'will continue until so many cars and motors are damaged by this fuel additive that the public outcry can no longer be ignored.'"

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