And now this-
June 25, 2013 - 7:26 am ET
WASHINGTON (Reuters) -- The U.S. Supreme Court rejected a challenge by automakers and oil producers to sales of a higher blend of ethanol allowed by the Environmental Protection Agency.
The justices on Monday let stand a federal appeals court ruling that said trade groups representing the industries lacked legal standing to press their challenges.
The appeals court earlier had said the challengers hadn’t shown their members would be injured by the rules.
The U.S. ethanol industry, which mostly makes fuel from corn, has pushed for E15, which contains 15 percent ethanol versus the traditional blend containing 10 percent.
It celebrated when the EPA in 2011 expanded use of E15 to cars built since the 2001 model year, which now comprise about two-thirds of the cars on the road in the United States.
The
Alliance of Automobile Manufacturers was among the groups asking the court to overturn a lower-court decision upholding sales of the higher blend. Some automakers won't cover damage to vehicles fueled with E-15. And
AAA has warned that most drivers don't know what E-15 is, and many inadvertently use it in cars not designed to handle the fuel.
The EPA's move also angered the American Petroleum Institute, the Grocery Manufacturers Association and other industry groups that also asekd the higher court to overturn the lower court's decision.
Ethanol can cut into the profits of gasoline producers, while food groups complain that ethanol use can raise grain and meat prices. They blame ethanol for helping to push corn prices to record levels during last year's drought, the worst in more than 50 years.
During the drought, ethanol opponents petitioned the EPA to temporarily waive the ethanol mandate. The food and refinery groups also petitioned the U.S. Court of Appeals for the D.C. Circuit to overturn its earlier decision allowing E15. They lost on both counts and petitioned the Supreme Court over the lower court's decision.
Monday's decision disappointed the oil refining industry which has also complained E15 can damage engines in boats, outdoor equipment, and older cars.
"The Supreme Court's decision denies the petitioners their day in court and will have negative repercussions for consumers," said Charles Drevna, the president of the American Fuel and Petrochemical Manufacturers industry group.
Ethanol groups applauded the rejection of the challenge. The decision clears the way for more fuel options for U.S. drivers, said Jeff Lautt, the CEO of POET, one of the world's largest ethanol producers. "We think drivers deserve reliable choices at the pump," he said.
Automotive News and Bloomberg contributed to this report.
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