Court Allows Higher Ethanol Content in Gasoline

A U.S. appeals court has rejected an attempt to block the U.S. Environmental Protection Agency from allowing refiners to increase the ethanol content in gasoline to 15% from 10%.

A three-judge panel in a 2:1 decision threw out the complaint by carmakers and the petroleum and grocery industries, saying none established harm and thus a right to sue.

The EPA previously agreed to allow the use of so-called E15 in vehicles built after 2001. But the agency emphasizes that its decision doesn't require either the sale or use of E15. The new blend has not yet been introduced into the American retail market.

Carmakers claim that higher alcohol content would make gasoline more corrosive and harm the fuel systems and engines of older vehicles. They warn that their powertrain warranties won't cover such damage.

Oil companies complain about the cost of adding E15 pumps at filling stations. They also say selling E10 and E15 blends simultaneously could confuse consumers. The grocery industry frets that higher consumption of corn-based ethanol fuel blends would raise prices for food and livestock feed.

A federal law in 2007 requires U.S. refiners to stretch supplies of gasoline by making at least 13.2 billion gallons of biofuels this year and 13.6 billion gallons by 2013.