U.S. court rejects auto industry challenge to E15

[WestVirginiaRebel]

Detroit News:

Washington - A federal appeals court Friday threw out a challenge by automakers and other groups to a new fuel with a higher blend of ethanol that could damage engines.

The U.S. Court of Appeals in a 2-1 decision rejected a suit brought by Alliance of Automobile Manufacturers, Global Automakers, the Grocery Manufacturers Association, the oil industry and other groups that sought to overturn the Enviromental Protection Agency's approval of E15 -a fuel that includes 15 percent ethanol.

E10 is used at most pumps today, which is 10 percent ethanol.

The case was thrown out on a technical reason - the court found that the groups didn't have legal standing to challenge the decision.

In March 2009, an ethanol advocacy group petitioned EPA for approval of the fuel - saying that without it, the U.S. could not meet the requirements for higher ethanol use set by Congress in a 2007 energy law.

EPA granted a partial waiver under the Clean Air Act to approve the fuel for use in vehicles from 2001 on - saying the fuel could damage engines of older vehicles.

But automakers say more research is needed and say the fuel could corrode new engines in newer vehicles.

Other groups suing included groups representing boat owners, snowmobile manufacturers and others who worry that the fuel could harm small engines.

Also suing are groups that rely on corn - like livestock producers, frozen food makers and others - who argue that the rise in ethanol has contributed to the big jump in corn prices in recent years.

Under the 2007 energy law, the U.S. is dramatically increasing the use of ethanol in vehicle fuel — to 15.2 billion gallons this year, up from 5 billion gallons in 2007. By 2022, the U.S. must use 36 billion gallons of biofuel, though 21 billion gallons are supposed to be from advanced cellulosic ethanol.

Both auto trade groups expressed disappointment and said they are considering whether to appeal to the full circuit court of the Supreme Court

The Alliance of Automobile Manufacturers - the trade association representing Detroit's Big Three automakers, Toyota Motor Corp., Volkswagen AG and seven others, said it was disappointed.

"Our greatest concern continues to be our customers. It is critical that consumers have a positive experience with renewable fuels," the group said. "It is not in the longer term interest of consumers, the government, and all parties involved to discover after the fact that equipment or performance problems are occurring because a new fuel was rushed into the national marketplace."

The group representing many foreign automakers also opposed the ruling.

"We disagree with the court's finding that automobile manufacturers do not have standing to challenge an agency action that permits the use of a fuel, such as E15, in automobiles not designed or warranted for such use," Global Automakers said. "We believe before E15 or any new alternative fuel is introduced into the marketplace that comprehensive, independent and objective scientific testing must be completed to ensure that the fuel will not harm the public."

The White House said last week it has made no decision on whether to waive ethanol requirements for use by the nation's 250 million vehicles in the wake of a severe drought that's cutting corn yields.

Last week, the USDA reduced its estimate of corn production to its lowest level in 17 years — 17 percent less than its last forecast, and 13 percent less than last year.

The United States grows about 40 percent of the world's corn. Prices on Friday remained above $8 a bushel, but could top $10, some analysts forecast.

Corn prices have jumped by more than 400 percent over the last seven years as the U.S. has dramatically boosted the amount of corn-based ethanol.

________

 

Government cornpone in the name of King Corn.

[RidesAPaleHorse]