API sues EPA over US cellulosic biofuel mandate
The American Petroleum Institute (API) filed a lawsuit this week with the DC Circuit Court challenging what it called “unachievable requirements” from the US Environmental Protection Agency (EPA) for use of cellulosic biofuels in the 2012 Renewable Fuel Standard (RFS).
“EPA’s standard is divorced from reality and forces refiners to purchase credits for cellulosic fuels that do not exist,” said API director of downstream and industry operations Bob Greco.
“EPA’s unrealistic mandate is effectively a tax on manufacturers of gasoline that could ultimately burden consumers,” he added.
The Clean Air Act requires EPA to determine the mandated volume of cellulosic biofuels each year at “the projected volume available”, the API trade group said.
EPA’s 2012 rule requires that refiners and importers of gasoline and diesel must use 8.65 million gallons of cellulosic biofuels despite a complete lack of commercial supply of the fuel, the API says.
“EPA must set the requirement at a realistic volume but they have not,” Greco said. “This is regulatory absurdity.”
API said it supports a realistic and workable RFS and continues to recommend that EPA base their prediction on at least two months of actual cellulosic biofuel production in the current year when establishing the mandated volumes for the following year.
This approach would provide a more realistic assessment of potential future production rather than simply relying on the assertions of companies, according to the API.
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