Food groups sue U.S. for ethanol boost in gasoline

Reuters Africa
Tue Nov 9, 2010 7:35pm GMT
By Timothy Gardner

* EPA had ruled 2007 and newer cars can burn E15
* Food groups say ethanol boost would raise prices
* EPA E15 decision on 2001 to 2006 cars expected soon

WASHINGTON, Nov 9 (Reuters) - Livestock producers and food industry groups filed a suit on Tuesday seeking to overturn a U.S. decision to allow higher levels of ethanol in gasoline, saying it could push up food prices.

The Grocery Manufacturers Association, the National Meat Association and other groups sued the Environmental Protection Agency, saying regulators overstepped their authority when they ruled last month that gasoline retailers could sell fuel containing up to 15 percent ethanol. That is an increase from the current allowable level of 10 percent.

The EPA ruled that cars built in 2007 and later could burn the fuel, known as E15.

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