The American Petroleum Institute asked the U.S. Environmental Protection Agency to reduce requirements in 2014 for the use of renewable fuels, citing limits on refiners to blend in greater volumes of ethanol.
The Obama administration granted a request from ethanol producers to increase concentrations of the corn-based fuel additive in gasoline for vehicles made for 2007 and later. Ethanol makers rose in New York trading.
A federal appeals court rejected an oil industry challenge to a new Environmental Protection Agency rule requiring more biofuels in gasoline and diesel, saying the agency properly carried out its mandate on energy independence.
The Obama administration is reviewing the country’s ethanol policy amid calls from both political parties and the United Nations to suspend annual targets as the worst drought in 56 years spurs corn prices.