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EPA Faces Tough Questions From Judges for Slashing Biofuel Quota

  • U.S. appeals court hears arguments over regulator’s decision
  • EPA lawyer pressed by judges, opponents to justify EPA action
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Two federal judges expressed skepticism of the U.S. Environmental Protection Agency’s decision to slash quotas for biofuels, signaling the judicial panel may tell the agency to reconsider.

Ethanol producers argued in federal court Monday that the EPA didn’t have the legal authority to cut mandates for the alternatives to gasoline. The agency reduced them from what was prescribed by Congress, saying the transportation fuels market couldn’t absorb the increased quantities of ethanol.