Tesoro files lawsuit in ethanol controversy
Oct 2, 2008 4:55 PM
Tesoro Refining and Marketing Co has filed a lawsuit against the California Air Resources Board (CARB) to prevent the implementation of a new regulation that the company said would essentially mandate the addition of more crop-based ethanol to gasoline in California.
In addition, the company is seeking a temporary injunction to stop enforcement of the rule while the lawsuit is being heard.
Tesoro said that CARB finalized a rule August 29, 2008, concerning gasoline specifications for California that would result in refiners increasing the amount of crop-based ethanol in gasoline from the current level of 5.7 percent to as much as 10 percent by December 31, 2009.
As a result of questions emerging about the impact crop-based ethanol has on the environment and food supply, Tesoro claims a greater review of the environmental and economic impact of the fuel supply is needed before increasing the ethanol requirements in California gasoline.
Tesoro noted that the impact of crop-based ethanol is multi-faceted and that the future availability of the fuel could be at risk if the current 52 cents per gallon subsidy is overturned.
The company argues that the CARB rule, which results in the increase of crop-based ethanol in gasoline, violates the intent established by another California regulation (AB 32), which calls for a decrease in greenhouse gas emissions to 1990 levels by 2020.
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