Esther Pena

Should the U.S. government have allowed higher levels of ethanol to be blended into our gasoline?

Discussion created by Esther Pena on Nov 16, 2010
Latest reply on Jan 24, 2011 by John Morico

According to the LATimes:


The food industry and livestock producers say no. Now a legal fight  is brewing over the ethanol issue, as the Grocery Manufacturers Assn.,  the National Meat Assn., the National Chicken Council and others have  filed suit against the federal Environmental Protection Agency.


Their beef: Regulators, they claim, stepped over the line last month  when the agency ruled that retailers could sell fuel with up to 15%  ethanol -– up from the currently allowed 10% levels. And cars made in  2007 and later could use the gas, which is commonly known by the "E15"  name.


The food folks argued that rule will lead to ethanol manufacturers  gobbling up more of the national (and perhaps the global) supply of  corn, which in turn "will put pressure on the meat and poultry supply,  which will lead to higher food prices for consumers," J. Patrick Boyle,  president of the American Meat Institute, said in a statement.


The federal agency defended its action and said it was confident that it would win the legal challenge.

The petition for review, filed Tuesday in the U.S. Court of Appeals  for the District of Columbia, comes at a time when commodity prices are  skyrocketing, driven by investor demand, short supplies of some crops  and robust demand from emerging markets such as China and India.