1-day-old SC law already faces legal challenge

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COLUMBIA, S.C. (AP) -- South Carolina fuel distributors must be allowed to make their own gasoline-ethanol blends under a first-in-the-nation law that supporters say will keep the state's gas prices among the nation's lowest.

Industry experts say the law could be adopted by other states. But it already faces a legal challenge here, one day after legislators overrode the governor's veto.

The law requires oil companies to offer raw gasoline to South Carolina distributors so they can blend the gasoline with ethanol to sell at the pump.

Supporters of the law say oil companies want to sell the gas pre-blended so they can keep the federal ethanol credits, which can top 8 cents a gallon.

Copyright 2008 by The Associated Press. All Rights Reserved.

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