SCENARIOS-Outlook for US ethanol market as EPA delays

Reuters
By Timothy Gardner

WASHINGTON June 23 (Reuters) - U.S. environmental regulators have delayed decisions on whether to allow higher concentrations of ethanol in gasoline, a blow to ethanol producers who face a glut of supply but a relief to automakers who fear ethanol will harm engine parts.

Ethanol makers and farmers had expected the Environmental Protection Agency to decide in July whether to allow an increase in the blend rate of ethanol in gasoline to 15 percent from 10 percent for cars built after 2001.

Instead the EPA said last week it would not decide until late September whether to allow cars made after 2007 to burn the higher blend [ID:nN17261431] and that decisions on older cars -- the bulk of the U.S. auto fleet -- would come later.

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