The concept of ethanol as a fuel began as early as the first Model T car designed by Henry Ford. American usage of ethanol-blended gasoline began in the late 1970s. Environmentally, the use of ethanol blends has assisted in reducing carbon monoxide emissions as mandated by the U.S. Clean Air Act of 1990. In addition, as corn prices declined during the 1980s, ethanol production, using corn as a feedstock, came to be seen as a way of expanding the domestic market for grain, helping to stabilize farmers' incomes. In Canada, air quality issues have taken on a higher profile on the public agenda.
Ethanol is made primarily from grains or other renewable agricultural and agroforestry feedstocks.
In Canada, where the volatility of ethanol blends must match normal gasoline, the ozone forming potential of ethanol blends is even lower than in the U.S., where ethanol blends are allowed to have increased volatility. The emissions produced by burning ethanol are less reactive with sunlight than those produced by burning gasoline. This results in a lower potential for forming the damaging ozone. The 'Greenhouse Effect' refers to the Earth's atmosphere trapping the sun's radiation. It is a term often used synonymously with 'Global Warming', which refers to the increasing average global temperature, arising from an increase in greenhouse gases from industrial activity and population growth.