The use of ethanol in an internal combustion engine was first investigated in 1897 (1). Henry Ford originally designed the Model T in 1908 to run on ethanol, but increasing taxes limited its use (2). The concept of employing ethanol as a fuel was reintroduced during the fuel shortages during both World Wars, but the U. S. federal ethanol program was not started until the oil crisis of the 1970s (2). In 1973, OPEC quadrupled the cost of purchasing crude oil (3), which started the resurgence of promoting ethanol as an alternative fuel for combustion engines. However, ethanol as an alternative fuel has not infiltrated the fuel market in the way blended ethanol/gasoline fuels have for automobiles.

Although research in the United States from the Society of Automotive Engineers showed extensive engine testing of E10 (10% ethanol/90% gasoline) in 1933, it was not until 1978 that the U. S. government established a National Alcohol Fuel Commission (4). In 1980, President Carter signed into the law the Energy Security Act containing Title 11, which is commonly called the Biomass Energy and Alcohol Fuels Act of 1980 (4). The Clean Air Act of 1970 allowed the Environmental Protection Agency (EPA) to set standards for vehicle emissions of carbon monoxide, nitrogen oxides, and ozone (4). In 1992, the EPA started requiring cities that were considered to have serious or moderate carbon monoxide pollution problems to establish oxygenated fuel programs. The oxygen content of 2.7% by wt is a required minimum for gasoline sold in these cities. This corresponds to approximately 7.5% by volume ethanol and approximately 15.0% by volume methyl tertiary butyl ether (MTBE) in gasoline.

In 1994, the EPA proposed a policy that at least 30% of the oxygenate be derived from renewable resources (4). However, this proposed policy was not passed by Congress. Ninety-five percent of the oxygenate used in Chicago is ethanol (4). Ethanol has been marketed in every state except California (MTBE has been the mandated oxygenate) (4), but currently MTBE is being phased out of California and ethanol is being phased in due to environmental issues.

In view of the recent Kyoto Conference at which the United States committed to decreasing greenhouse gas emissions by 2012 to below the 1990 level (5), ethanol/gasoline blends from E10 to E85 are an excellent way to achieve these greenhouse gas reductions. Argonne National Laboratory has shown that green­house gas emissions is 2.4 to 2.9% less for E10 than 100% gasoline overall (5). Most of this decrease is due to a decrease in greenhouse gas emissions from vehicle combustion because there is actually a small increase in greenhouse gas emission from the fuel due to volatility.