All eyes in the ethanol industry are on the Environmental Protection Agency this morning, awaiting a ruling on the waiver to allow up to 15 percent ethanol in regular gasoline that was requested in March of 2009.

Industry sources are expecting to see a fragmented approval of E15, allowing it in cars 2007 and newer, but waiting for more testing to approve it in 2001-2006 model vehicles and possibly not allowing it at all in 2000 model vehicles or older, motorcycles, heavy-duty vehicles, off-road vehicles and non-road engines. Such a decision is unlikely to please anyone, either for or against the increase, since ethanol backers fear it will lead to confusion for retailers and consumers.

The announcement from EPA is expected later today.