Governors' Biofuels Coalition

WASHINGTON (AP) — The debate over the peril and the promise of a high-ethanol blend of gasoline known as E15 took a turn Monday as the Supreme Court rejected a challenge by the American Petroleum Institute, the oil industry’s chief lobbying group, to block sales of E15.

The justices left in place a federal appeals court ruling that dismissed challenges by the oil industry group and trade associations representing food producers, restaurants and others.

E15 contains 15 percent ethanol, above the current 10 percent norm sold at most U.S. gas stations.

Tom Buis, CEO of Growth Energy, an ethanol industry group, hailed the decision as a victory for U.S. consumer, who will now have greater choice at the pump.

“Now that the final word has been issued, I hope that oil companies will begin to work with biofuel producers to help bring new blends into the marketplace that allow for consumer choice and savings,” Buis said.

The API had argued that E15 was dangerous for older cars.

Putting fuel with up to 15 percent ethanol into older cars and trucks “could leave millions of consumers with broken down cars and high repair bills,” said Bob Greco, a senior API official who has met with the White House on ethanol issues.

The ethanol industry counters that there have been no documented cases of engine breakdowns caused by the high-ethanol blend since limited sales of E15 began last year.

“This is another example of oil companies unnecessarily scaring people, and it’s just flat-out wrong,” said Bob Dinneen, president of the Renewable Fuels Association, an ethanol industry group.

The dispute over E15 is the latest flashpoint in a long-standing battle over the Renewable Fuel Standard, approved by Congress in 2005 and amended in 2007. The law requires refiners to blend increasing amounts of ethanol into gasoline each year as a way to decrease reliance on fossil fuels and lower greenhouse gas emissions that contribute to global warming.

The Environmental Protection Agency has proposed a 16.5 billion-gallon production requirement for ethanol and other gasoline alternatives this year, up from 15.2 billion gallons last year. By 2022, the law calls for more than double that amount.

Biofuel advocates and supporters in Congress say the law has helped create more than 400,000 jobs, revitalized rural economies and helped lower foreign oil imports by more than 30 percent while reducing emissions of carbon dioxide and other greenhouse gases.

But the oil industry, refiners and some environmental groups say the standard imposes an unnecessary economic burden on consumers. Using automotive fuel that comes from corn also has significant consequences for agriculture, putting upward pressure on food prices, critics say.

“The ever increasing ethanol mandate has become unsustainable, causing a looming crisis for gasoline consumers,” said the API’s Greco. Ethanol supporters say E15 is cheaper than conventional gasoline and offers similar mileage to E10, the version that is commonly sold.

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