We're going to see more ethanol in our gasoline, but only for vehicles made since 2007.

The Environmental Protection Agency granted a waiver that allows refiners to increase from 10 percent to 15 percent the amount of ethanol blended into gasoline. The decision follows months of testing by the EPA and a review of data on E15's impact on engine durability and emissions that found the fuel is safe for newer automobiles.

“Thorough testing has now shown that E15 does not harm emissions control equipment in newer cars and light trucks,” Lisa P. Jackson, EPA administrator, said in a statement. “Wherever sound science and the law support steps to allow more home-grown fuels in America’s vehicles, this administration takes those steps.”

Refiners have since 1979 blended up to 10 percent ethanol into gasoline for all conventional cars and light trucks. The ethanol industry has lobbied heavily to have that amount increased, arguing ethanol is a cheaper alternative to gasoline and can help ease our dependence on foreign oil.

“This is a first step,” Tom Buis, chief executive officer of the industry trade group Growth Energy, told Bloomberg. Growth Energy joined 54 ethanol producers in seeking the waiver last year. The group had sought an across-the-board bump to 15 percent but accepted the compromise. “We know we have challenges we have to address.”

Not everyone in the ethanol biz is happy.

The Renewable Fuels Association, another industry lobby, said the EPA is "missing an opportunity" by "bifurcating" the E15 market, and it said there is no scientific basis for limiting the adoption of the higher standard.

"EPA’s scientifically unjustified bifurcation of the U.S. car market will do little to move the needle and expand ethanol use today,” association president and CEO Bob Dinneen said in a statement. “Limiting E15 use to 2007 and newer vehicles only creates confusion for retailers and consumers alike."

A valid point. To that end, the EPA is proposing E15 pump labeling requirements, including a requirement that the fuel industry specify the ethanol content of gasoline sold to retailers. There also would be a quarterly survey of retail stations to help ensure their gas pumps are properly labeled.

Retailers could have to create separate storage and distribution systems for the various types of fuel, according to Financial Times. Those capital expenditures could delay the availability of E15 by several months, according to Dow Jones News Wires.

AAA had warned the Obama Administration not to approve the waiver, arguing the increase could damage exhaust and fuel systems and destroy catalytic converters. Detriot automakers also urged caution, as did the Natural Resources Defense Council.

“Though seen as a win for corn-ethanol lobby groups like Growth Energy, the new ethanol blends come with serious risks for our engines, wildlife, water and the air we all breathe,” Nathanael Greene, a renewable-energy policy analyst with the NRDC, told Bloomberg.

The Energy Independence and Security Act of 2007 requires increasing to 36 billion gallons, by 2022, the overall volume of renewable fuels on the market.

The government has since 1979 capped at 10 percent the amount of ethanol blended into gasoline. Growth Energy joined 54 ethanol producers in filing the E15 petition. It was filed under a provision of the Clean Air Act that allows the EPA to waive a prohibition against selling significantly altered fuel if the new fuel will not lead to the failure of automobile emissions system components.

Tests on the impact of higher ethanol blends on vehicles made between 2001 and 2006 should be finished by November. The EPA has no plan to allow a higher blend for vehicles made before 2001 because it does not have sufficient data to determine the impact, Gina McCarthy, EPA assistant administrator for air and radiation, said during a conference call with reporters.

Financial Times reports that today's waiver opens about one-fifth of the U.S. fleet to the higher blend; that could increase to three-fifths if the EPA approves the higher blend for vehicles built since 2001.

The newspaper notes ethanol production is expected to consume about 37 percent of the nation's corn crop this year and a surge in corn prices is renewing concerns that ethanol production is increasing food prices. The ethanol industry argues boosting the viability of corn ethanol will hasten the arrival of viable cellulosic ethanol produced from wood chips, switchgrass and other biomass.

Photo: James J. Jenkins / Flickr