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Ethanol Increase Survives as Top Court Rejects Challenges

June 24 (Bloomberg) -- The U.S. Supreme Court left intact Environmental Protection Agency rules allowing higher concentrations of corn-based ethanol in gasoline, turning away appeals from the grocery, auto and oil industries.

The justices today let stand a federal appeals court ruling that said trade groups representing the industries lacked legal standing to press their challenges.

The appeals court said the challengers hadn’t shown their members would be injured by the rules. The groups contended that increased use of ethanol would push up the price of food and gasoline and harm vehicle engines.

The dispute centered on EPA rules allowing E15, a blend of unleaded gasoline that contains up to 15 percent ethanol. The EPA has approved E15 for cars and light trucks made for the model year 2001 and later.

The cases are Grocery Manufacturers Association v. Environmental Protection Agency, 12-1055; Alliance of Automobile Manufacturers v. Environmental Protection Agency, 12-1167; and American Fuel & Petrochemical Manufacturers v. Environmental Protection Agency, 12-1229.

To contact the reporter on this story: Greg Stohr in Washington at gstohr@bloomberg.net.

To contact the editor responsible for this story: Steven Komarow at skomarow1@bloomberg.net.

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