API sues EPA over 2012 RFS cellulosic biofuels requirements

The American Petroleum Institute sued the US Environmental Protection Agency over what API considers unachievable cellulosic biofuels use requirements in the 2012 Renewable Fuel Standard (RFS). API filed a petition for review on Mar. 12 in US Appeals Court for the District of Columbia.

“EPA’s standard is divorced from reality and forces refiners to purchase credits for cellulosic fuels that do not exist,” said Bob Greco, API director of downstream and industry operations. “EPA’s unrealistic mandate is effectively a tax on manufacturers of gasoline that could ultimately burden consumers.”

Greco said the Clean Air Act requires EPA to determine the mandated volume of cellulosic biofuels each year at “the projected volume available.” EPA’s 2012 rule requires that refiners and importers of gasoline and diesel must use 8.65 million gal of cellulosic biofuels despite a complete lack of commercial supply of the fuel, Greco said.

“EPA must set the requirement at a realistic volume, but [it has] not,” he maintained. “This is regulatory absurdity.”

API supports a realistic and workable RFS and continues to recommend that EPA base their prediction on at least 2 months of actual cellulosic biofuel production in the current year when establishing the mandated volumes for the following year, according to Greco.

This approach would provide a more realistic assessment of potential future production rather than simply relying on the assertions of companies whose ability to produce the cellulosic biofuel volumes EPA hopes for is questionable, he indicated.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

NGSA asks Congress to pass bills facilitating LNG exports

03/27/2014 The Natural Gas Supply Association called on Congress to support legislation that would facilitate more LNG exports. “Exporting LNG overseas will h...

IHS: Western sanctions indirectly could hinder Russian oil, gas revenues

03/27/2014 Western sanctions imposed against Russian government officials and business executives regarding Russia’s conflict with Ukraine could slow the avai...

US, European energy leaders to discuss gas diversification measures

03/27/2014 Top US government energy officials and their counterparts from other G7 nations will meet early next week to discuss reducing Europe’s heavy relian...

EIA: Cushing inventories down 32% over the last 2 months

03/27/2014 According to the US Energy Information Administration, crude oil inventories at Cushing, Okla., the primary crude oil storage location in the US, d...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected