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“For the first time, EPA has acknowledged that the blend wall is a dangerous reality that must be addressed to avoid serious impacts on America’s fuel supply and would be harmful for American consumers,” Mr. Gerard said.

“Ultimately,” he added, “Congress must protect consumers by repealing this outdated and unworkable program once and for all.”

The new proposal announced Friday is unlikely to mean much for consumers at the pump. It could, however, cut into farmers’ profits for corn, the primary ethanol source. The EPA proposal now faces 60 days of public comment before a final version is issued early in 2014.

This article is based in part on wire service reports.