U.S. Backing Of Auto Warranties May Hinder Push For EPA To Back E15

The Obama administration’s pledge to back warranties for new General Motors and Chrysler vehicles if the companies go bankrupt may hinder a pending petition asking EPA to raise the level of ethanol in gasoline from 10 percent (E10) to E15 because it could increase potential liabilities stemming from engine damage due to the new fuel blend, opponents of the E15 effort say.

But supporters of the E15 effort say EPA is barred from considering the issue when they weigh the petition.

At issue is Growth Energy’s March 6 petition asking EPA to lift its current E10 cap, saying there is data to warrant an immediate increase to E12 or E13 while studying the merits and data relative to lifting the cap to allow E15. The group says EPA should designate E12 or E13 as