Suit Fights Ethanol Mandate

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California's attorney general sued the U.S. government Monday to wipe out the federal rule requiring the use of ethanol in California gas tanks. But new federal energy legislation awaiting President Bush's signature could soften the ethanol requirement and possibly render the lawsuit meaningless, a spokeswoman for Attorney General Bill Lockyer acknowledged.

California's attorney general sued the U.S. government Monday to wipe out the federal rule requiring the use of ethanol in California gas tanks.


But new federal energy legislation awaiting President Bush's signature could soften the ethanol requirement and possibly render the lawsuit meaningless, a spokeswoman for Attorney General Bill Lockyer acknowledged.


For years California has been fighting a federal requirement that says ethanol must be blended into the gasoline sold in most of California.


The federal government says ethanol helps clean the air, but California says the corn-based additive is expensive and, because of its chemical properties, actually worsens air pollution in hot weather.


Congress recently passed an energy bill that would delete the ethanol requirement in California. Lockyer, however, couldn't wait to see if Bush would sign the bill, spokeswoman Teresa Schilling said.


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That's because he had just 60 days from June 2 to challenge the federal government's latest refusal to lift its ethanol requirement, she said.


Lockyer filed suit Monday in the 9th U.S. Circuit Court of Appeals in San Francisco.


Because of the uncertainty over the energy bill's fate, "we didn't want to miss out on the only opportunity we had" to challenge the EPA's ruling, Schilling said.


Even if Bush signs the energy bill, it seems certain ethanol will stay around in California.


While exempting California from its current ethanol requirement, the legislation would force refiners around the country to blend a certain amount of ethanol into gas sold to consumers.


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Source: Knight Ridder/Tribune Business News