Processing Magazine

Oil group sues EPA for mandating use of ‘nonexistent biofuels’

July 26, 2012

WASHINGTON — The American Petroleum Institute (API) filed a lawsuit with the D.C. Circuit Court on Tuesday challenging the U.S. Environmental Protection Agency’s (EPA) mandated use of “nonexistent cellulosic biofuels” in the 2011 Renewable Fuel Standard (RFS).

“EPA’s unattainable and absurd mandate forces refiners to pay a penalty for failing to use biofuels that don’t even exist,” said API Director of Downstream and Industry Operations Bob Greco. “The mandate is effectively an added tax on gasoline manufacturers that could ultimately burden consumers.”

The Clean Air Act requires EPA to determine the mandated volume of cellulosic biofuels each year at “the projected volume available.” There was no commercial supply of the fuel in 2011, according to API, which cited EPA’s own records. However, EPA required refiners and importers of gasoline and diesel to use or pay for credits to cover 6.6 million gallons of the nonexistent biofuels.

“EPA is directed to set the fuel requirement at a realistic volume but the agency continues to mandate the use of biofuels that do not exist,” Greco said.