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The Obama administration is scaling back the federal mandate for using ethanol in gasoline - a loss for the corn industry that could scramble political calculations in the Iowa caucuses.

For the first time ever, the Environmental Protection Agency will require fuel suppliers to blend less ethanol into gasoline than Congress specified in 2007. The much-lobbied decision is likely to become an issue for presidential candidates in Iowa, the nation's top producer of corn-based ethanol, especially for Democratic front-runner Hillary Clinton.

The 2007 biofuels mandate has faced growing opposition from critics including the oil industry, livestock producers and several environmental groups.

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