Tesoro Tries to Block California Rules on Ethanol in Gasoline

By Paul Dobson

Oct. 1 (Bloomberg) -- Tesoro Corp., the largest oil refiner in the U.S. West, said it filed a lawsuit against the California Air Resources Board to block a regulation that would raise the ethanol content in gasoline to as much as 10 percent by the end of 2009.

Tesoro is calling for a review of the environmental and economic impact of ethanol, saying it may increase carbon- dioxide emissions and have an effect on food prices, the San Antonio-based company said in a Business Wire statement. It expects a ruling in 30 days to 60 days, he said.

To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net