EPA will wait until fall on whether U.S. car engines can handle more ethanol

WASHINGTON (AP) — The Environmental Protection Agency says it will wait until this fall to decide whether U.S. car engines can handle higher concentrations of ethanol in gasoline.

The agency had been expected to decide by this month whether to increase the maximum blend from 10 to 15 percent.

The EPA said Thursday that initial tests "look good" and should be completed by the end of September. A decision will come after the Energy Department completes the testing of the higher blend on vehicles built after 2007.

The ethanol industry has maintained that there is sufficient evidence to show that a 15 percent ethanol blend in motor fuel will not harm the performance of car engines. But the refining industry, small engine manufacturers and some environmental groups have argued against an increase.

Agriculture Secretary Tom Vilsack said the announcement is good news for ethanol producers and that the EPA is taking "a significant step forward" by discussing their timeline.