EPA:The Environmental Protection Agency is expected to issue its long-awaited decision on a petition from the ethanol industry, which wants to raise t

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The Environmental Protection Agency is expected to issue its long-awaited decision on a petition from the ethanol industry, which wants to raise the amount of ethanol allowed in gasoline to 15 percent from the current 10 percent.

http://www.politico.com/news/stories/1010/43504.html#ixzz12GM3nBcS
EPA to OK higher ethanol-gas blendsMain Content EPA to OK higher ethanol-gas blends 22 Comments The EPA is expected to approve the use of 15 percent ethanol gasoline for newer vehicles. | AP By ROBIN BRAVENDER | 10/12/10 8:18 PM EDT The Obama administration will approve a boost in gasoline’s ethanol content for new cars on Wednesday, in a partial victory for supporters of the corn-based fuel.
The Environmental Protection Agency is expected to issue its long-awaited decision on a petition from the ethanol industry, which wants to raise the amount of ethanol allowed in gasoline to 15 percent from the current 10 percent.
EPA will approve the use of gasoline with 15 percent ethanol (E15) for new vehicles built in model year 2007 and after, said an industry source following the process, but will reject the request to raise the ethanol content for vehicles manufactured before 2001 and for off-road machinery.
The agency is expected to hold off on a decision on cars for model years 2001-2006 until later this year.
The decision to deny the higher blend for older vehicles could cause problems, an industry source told POLITICO Tuesday.
“Because EPA is kind of splitting up the market, I think they’re actually creating a real mess potentially out in the marketplace,” the source said. “We’re very concerned about the potential for consumer confusion and damage to engines, as well as safety issues.”
The agency is rumored to be considering a rule that would require labels to warn consumers about using the wrong fuel blend, the source added.
An unusual coalition composed of oil industry groups, environmentalists, food manufacturers and others has lobbied EPA to delay its decision based on concerns about safety, the environmental effects of boosted ethanol production, and fears of rising food costs.
The ethanol industry and its backers, meanwhile, are expected to applaud EPA’s decision on new vehicles, but will likely prod the agency to allow its use in older vehicles.
Growth Energy, the ethanol trade group that filed the petition seeking the waiver, has said the higher ethanol blend is safe for all cars.
Ultimately, the group said in a statement last month, “EPA’s approval of E15 for newer vehicles can and should be extended to older vehicles to make real progress in reducing America’s dependence on foreign oil. A full move to E15 creates a bigger market for American ethanol that creates American jobs, improves our environment and strengthens our national security and energy independence.”