US court rejects challenge on ethanol

A US federal appeals court has rejected a challenge to Environmental Protection Agency decisions allowing an increase in ethanol content in petrol.

In a 2-1 ruling, the US Court of Appeals for the District of Columbia Circuit said trade associations of engine manufacturers, food producers and petroleum producers did not have standing to sue because they failed to show that their members are harmed by the EPA action.

In two decisions, the agency approved the introduction of a petrol blend of up to 15 per cent ethanol for use in light-duty vehicles from model-year 2001 and later.

The US petrol supply is largely a blend with 10 per cent ethanol.

Ethanol producers, who sought the 15 per cent option, say the ruling keeps a pathway open that could enable ethanol demand to expand.

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