<P> In 1826 Samuel Morey experimented with an internal combustion chemical mixture that used ethanol (combined with turpentine and ambient air then vaporized) as fuel . At the time, his discovery was overlooked, mostly due to the success of steam power . Ethanol fuel received little attention until 1860 when Nicholas Otto began experimenting with internal combustion engines . In 1859, oil was found in Pennsylvania, which decades later provided a new kind of fuel . A popular fuel in the U.S. before petroleum was a blend of alcohol and turpentine called "camphene", also known as "burning fluid ." The discovery of a ready supply of oil and unfavorable taxation on burning fluid made kerosene a more popular fuel . </P> <P> In 1896, Henry Ford designed his first car, the "Quadricycle" to run on pure ethanol . In 1908, the revolutionary Ford Model T was capable of running on gasoline, ethanol or a combination . Ford continued to advocate for ethanol fuel even during the prohibition, but lower prices caused gasoline to prevail . </P> <P> Gasoline containing up to 10% ethanol began a decades - long growth in the United States in the late 1970s . The demand for ethanol produced from field corn was spurred by the discovery that methyl tertiary butyl ether (MTBE) was contaminating groundwater . MTBE's use as an oxygenate additive was widespread due to mandates in the Clean Air Act amendments of 1992 to reduce carbon monoxide emissions . MTBE in gasoline had been banned in almost 20 states by 2006 . Suppliers were concerned about potential litigation and a 2005 court decision denying legal protection for MTBE . MTBE's fall from grace opened a new market for ethanol, its primary substitute . Corn prices at the time were around US $2 a bushel . Farmers saw a new market and increased production . This demand shift took place at a time when oil prices were rising . </P> <P> The steep growth in twenty - first century ethanol consumption was driven by federal legislation aimed to reduce oil consumption and enhance energy security . The Energy Policy Act of 2005 required use of 7.5 × 10 ^ US gal (28 × 10 ^ m) of renewable fuel by 2012, and the Energy Independence and Security Act of 2007 raised the standard, to 36 × 10 ^ US gal (140 × 10 ^ m) of annual renewable fuel use by 2022 . Of this requirement, 21 × 10 ^ US gal (79 × 10 ^ m) had to be advanced biofuels, defined as renewable fuels that reduce greenhouse gas emissions by at least 50% . </P>

When did the us start putting ethanol in gasoline