EPA begins discussion on boosting ethanol content in gas to 15%

— -- EPA-ETHANOL/BLEND:EPA seeks public comment on US ethanol blend rate

The federal government agreed Thursday to begin taking public comment on a proposal that could boost the amount of ethanol in gasoline by 50% — a small, early victory for suppliers seeking to expand sales of ethanol, usually made from corn.

Automakers, refiners and companies that sell and service small engines have objected, saying there's insufficient data to prove more alcohol won't damage engines.

Currently, the Environmental Protection Agency allows gasoline to contain up to 10% ethanol, a blend called E10, also known as gasohol, that's in general use nationwide.

Boosting the ceiling to 15% ethanol would give ethanol producers a potentially bigger market, but would require refiners to cooperate and use more ethanol and less gasoline in their fuels.

The small-engine industry, which complained of damage when E10 became widespread, is wary. Honda spokesman Edward Cohen said: "All of our products are designed to accommodate E10 fuel. E15 is a very different fuel and we simply do not know its impact on power products. Testing is ongoing." Honda makes lawn mowers, generators and boat engines, in addition to cars.

Despite federal requirements that oil refiners blend increasing amounts of ethanol into gasoline, the fuel-ethanol industry is staggering — hurt by the high price of corn and the low pump price of fuel. Also, Americans are driving less and using less fuel, which has trimmed ethanol sales.

Of the U.S. industry's 12.5 billions gallons of annual capacity, 2 billion is idle, according to the Renewable Fuels Association, a trade group.

Separate regulations permit the sale of fuel that's 85% ethanol, 15% gasoline, called E85. It's mainly available in the corn-rich Midwest. But E85 can only be used safely in so-called flex-fuel vehicles designed to accommodate high concentrations of ethanol.

Alcohols, including ethanol, are corrosive and attract water. Flex-fuel vehicles have special components to cope with those drawbacks without damage.