EPA to Allow 15% Ethanol for Newer Cars, Light Trucks

The Environmental Protection Agency said it will allow up to 15% ethanol content in gasoline for newer vehicles, up from the current 10%.

The decision would allow 15% ethanol, known as E15, for cars and light trucks made in model year 2007 and later. A decision to allow E15 for model years 2001-2006 will be made after further testing, EPA said Wednesday.

The agency will not boost allowable ethanol content for model year 2000 or earlier because sufficient testing is not available, Gina McCarthy, EPA’s assistant administrator for air and radiation, told reporters in a conference call, Bloomberg reported.

Valero Energy Corp., the largest U.S. refiner, and Marathon Oil Co., the Midwest’s largest refiner, are concerned the new blend may leave them liable for engine damage, Bloomberg reported, citing company spokesmen.

Gasoline retailers will not be allowed to sell the blend until the EPA completes rules for gasoline-pump labels, and E15 may be available to motorists by early next year, Bloomberg said.