WASHINGTON -- A U.S. federal appeals court on Tuesday denied a request by food and oil groups that it reconsider a decision upholding a measure allowing the commercial sale of the E15 ethanol-gasoline blend, reported Reuters.
The petitioners, led by the Grocery Manufacturers Association (GMA) and the American Petroleum Institute (API), requested a rehearing after the U.S. Court of Appeals for the D.C. circuit in August backed the U.S. Environmental Protection Agency's approval of the 15% mix, an increase from the previous maximum ethanol blend of 10%.
The lobbying groups said that the higher ethanol blend in gasoline could cause damage to car engines and fuel systems, resulting in costly repairs for consumers.
The court upheld the two-to-one opinion handed down in August that the trade groups' claims of harm were speculative.
But Judge Brett Kavanaugh, the lone dissenter, said the law does not allow the EPA to grant a waiver for a higher blend, suggesting that the case might continue. "The evidence is undisputed that this E15 waiver would cause failure of emissions standards in cars manufactured through 2000. Yet EPA still granted the waiver. EPA's action simply cannot be squared with the statutory text," Kavanaugh wrote.
Ethanol trade groups applauded the court's decision. "This is a major victory for the renewable fuels industry and opens the door for further investment in new fueling technology to offer E15 to consumers," said Tom Buis, CEO of Growth Energy, which represents ethanol producers.
The sale of E15 is not widespread yet and faces barriers including the cost of installing special pumps that can dispense various blends at gas stations. States must also give approval for the local sale of E15.
The API said it has not yet decided how to continue to challenge the EPA on this issue in the courts. "We're disappointed in the court's decision not to hear the case and are weighing our legal options," said Carlton Carroll, a spokesperson for the API.
"EPA approved E15 even though research by automakers, the oil industry and the government showed potential mechanical and infrastructure problems with E15 that could also lead to serious safety and environmental problems.
A report by the AAA in December said there is insufficient evidence that E15 is safe to use in most vehicles and that most cars were never designed to use E15 as a fuel. "AAA believes the EPA and retailers should suspend the sale of E15 until more is done to protect consumers from the potential for costly auto damage and voided warranties," an AAA spokesperson told the news agency on Tuesday.
The case is Grocery Manufacturers Association v. U.S. Environmental Protection Agency, U.S. Court of Appeals for the District of Columbia Circuit (Washington).
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