The American Coalition for Ethanol is proposing a solution to gasoline disruptions and higher prices caused by recent hurricanes in the Gulf of Mexico – a 15 percent solution of ethanol.

In a posting on the ACE blog this week, they note that Hurricanes Gustav and Ike have caused nearly a quarter of U.S. fuel production to be shut down, and about 20% of U.S. refining capacity could be lost for months.

In response, states are seeking and the government is granting temporary waivers for certain requirements for gasoline, essentially providing more flexibility to blenders in an attempt to help supply keep up with demand.

While officials wring their hands trying to tinker around the edges to free up more gasoline, a largely overlooked source of meaningful relief comes in the form of ethanol – more of it, to be exact.

State and federal officials should look at increasing the percentage of ethanol allowed in gasoline from 10% up to 15% or even 20%. Even if it’s a temporary measure, this would be an immediate solution to increase the availability of fuel.

ACE is encouraging people to ask their state and federal lawmakers to consider E15 an option to deal with the fuel shortages caused by the hurricanes.