Iowa is the nation's leading producer of ethanol, a fuel additive primarily made from corn that produces lower carbon emissions than gasoline. The EPA in November proposed cutting production to 2012 levels, prompting outcry by political leaders from both parties who claimed such a move would devastate Iowa's economy.
The EPA stated in its November report that the additive had become less necessary in light of fuel-efficient engines and lower fuel demand.
An Iowa State University economist says the economic impact elected officials claim is overstated.
The EPA is taking public comment for 60 days on its recommendation.