42 gas stations in Wisconsin are suing Utica Energy LLC and Renew E85 ethanol stations for, get this, selling ethanol too cheaply. The gas stations want $12 M and an injunction stopping Renew E85 from selling any more ethanol. Court records say Renew E85 sold the biofuel below a minimum price set by Wisconsin's Unfair Sales Act. While there are reasons for price controls, the Unfair Sales Act may not be very good.
The ethanol stations had been warned about the violations of the Act, but Governor Jim Doyle has told the state not to prosecute. The environmental advantages of ethanol are questionable and they have been given waivers on pollution. Tell us what you think: is the Governor right to go easy on ethanol sellers under a bad law or do gas stations need competitive protection against ethanol stations?

[Source: North Western]


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