Ethanol — once the enemy in the state’s war on air pollution — is today’s action hero in the state’s battle to keep gasoline cheap for California motorists. Faced with a tight oil supply and rising gasoline prices, the Schwarzenegger administration has surrendered and is no longer pressing the Environmental Protection Agency to waive a federal requirement to use the corn-based alcohol as a gasoline additive. Instead, the administration is embracing ethanol, according to observers, even though a state report shows that the federal rule requiring a minimum of 5.9 percent ethanol in California gasoline increases emissions. The California Air...