U.S. allows more cars to use higher ethanol gasoline

WASHINGTON (Reuters) - The Environmental Protection Agency on Friday expanded the number of vehicles allowed to use gasoline containing higher levels of corn-based ethanol, a move the automobile industry and food producers fear will raise costs.

The agency cleared gasoline containing 15 percent ethanol, up from 10 percent, for vehicles built from 2001 to 2006.

The EPA approved in October so-called E15 gasoline for cars and trucks built in 2007 and later, so now the fuel can be used to power more than 60 percent the cars and trucks on U.S. roads.

"Recently completed testing and data analysis show that E15 does not harm emissions control equipment in newer cars and light trucks," said EPA Administrator Lisa Jackson.

"Wherever sound science and the law support steps to allow more home-grown fuels in America's vehicles, this administration takes those steps," she added.

Already some 40 percent of the U.S. corn crop goes to make ethanol, and the fuel has helped spur prices on commodity markets.

However, service station owners are worried that putting higher ethanol blends in older cars could lead to lawsuits if the fuel damages their engines.

The industry will also have to pay for new blender pumps and storage tanks to sell E15, which could slow adoption of the fuel.

The EPA said it is still reviewing public comment for an E15 label that would be put on gasoline pumps to make sure consumers don't use the wrong fuel.

With world food prices soaring, livestock feeders and food makers also fear that E15 gasoline will push up corn prices because of increased demand from ethanol makers for the grain.

Growth Energy, the trade group that petitioned the EPA back in March 2009 to allow E15, said the agency's decision was a bold move that would change America's energy future.

"Increased use of ethanol will strengthen our energy security, create U.S. jobs, and improve the environment by displacing conventional gasoline with a low-carbon fuel," said Tom Buis, chief executive of Growth Energy.

"Today's decision greenlights the use of E15 for nearly two out of every three cars on the road today and furthers proves ethanol is a safe, effective fuel choice for American drivers," said Renewable Fuels Association President Bob Dinneen.

Both Dinneen and Buis urged the EPA to allow E15 for all cars and pickups.

The trade group for oil refiners criticized the EPA's decision, saying the agency acted without adequate scientific evidence that E15 was safe.

"Widespread use of 15 percent ethanol in gasoline could cause engine failures that could leave consumers stranded, injured or worse, and hit consumers with costly engine repairs," said Charles Drevna, President of the National Petrochemical & Refiners Association.

The group has sued EPA to keep E15 off the market.

(Reporting by Tom Doggett; additional reporting by Ayesha Rascoe, Editing by Marguerita Choy)

WhatsAppFacebookTwitterLinkedinBeloudBluesky