The Obama administration on Tuesday proposed rules to limit emissions of climate-changing gases from the manufacture of ethanol, a step that would probably curtail the expansion of corn ethanol production.

U.S. President Barack Obama's administration issued a draft rule on Tuesday aiming to cut greenhouse gasses emitted by biofuels but confirming his predecessor's target for production of corn-based ethanol.

President Barack Obama's administration will face a big test on fighting climate change when it seeks to determine if ethanol, the top US alternative motor fuel, cuts greenhouse gas emissions.

President Barack Obama will direct the heads of three US agencies to make the biofuels industry cleaner and encourage output of ethanol made from non-food crops, according to a draft memo obtained by Reuters on Monday.

The California Air Resources Board (CARB) adopted a low-carbon fuel standard that requires greater use of fuels that cause lower greenhouse gas emissions, compared with gasoline. Corn-based ethanol doesn't meet that test and won't benefit from the new standard, CARB says, because diverting corn into ethanol production increases deforestation and the clearing of grasslands.

INDIA could earn up to $100 billion through trading of certified emission reductions (CERs), or carbon credits, a government official said on Wednesday.

The state of California has adopted regulations to curb greenhouse-gas emissions from transportation fuels, codifying evidence that biofuels are significantly dirtier than they were once thought to be.

California's newly adopted low-carbon fuel standard may mark the beginning of the end of ethanol's coveted status as the sole US alternative motor fuel.

The US state with the most cars late on Thursday approved the world's first-ever regulations to slash emissions of planet-warming carbon dioxide from vehicle fuels.

California on Wednesday is expected to adopt landmark rules to curb carbon emissions from transportation fuels despite intense opposition from some who say the proposal is biased against corn-based ethanol.

The US Environmental Protection Agency said Thursday it is seeking public comment on whether to allow a higher level of ethanol to be blended into gasoline.

Growth Energy and more than 50 ethanol manufacturers petitioned the EPA last month to raise the maximum blend level for ethanol in gasoline from 10 percent to as much as 15 percent.

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