By Danny King, Contributor The federal government announced today that it will delay by about six months a decision on whether to boost the allowable amount of ethanol in gasoline by 50 percent. The announcement was applauded by automobile trade groups and a biofuels trade group, which viewed the delay as an indication that the increased allowance will likely be allowed. Another biodiesel group, however, accused the government of dragging its feet on updating regulations that may boost demand for biomass-based biodiesel. The U.S. Environmental Protection Agency, which under Clean Air Act rules had until today to respond to a request by the biofuels group Growth Energy to boost the allowable limit of ethanol in gasoline to 15 percent from 10 percent, said it will make a decision in mid-2010. However, the EPA hinted at a possible approval. “While not all tests have been completed, the results of two tests indicate that engines in newer cars likely can handle an ethanol blend higher than the current 10-percent limit,” the EPA said in a statement. “The agency will decide whether to raise the blending limit when more testing data is available.” Gen. Wesley Clark, co-chairman of Growth Energy, said in a separate statement that the announcement is “a strong signal that we are preparing to move to E15, a measure
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EPA’s Ethanol Timetable Applauded, but Agency’s Biodiesel Effort Bashed
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