EPA establishes 1.28 billion gal biodiesel minimum for 2013

The US Environmental Protection Agency established the amount of biodiesel products to be included in US fuel markets during 2013 at 1.28 billion gal. EPA said it acted under provisions of the 2007 Energy Independence and Security Act, which established a second phase of the federal renewable fuels standards.

It said the law specifies a 1 billion gal minimum biodiesel level for 2012 and beyond. EPA acted after reviewing comments and additional information received since it proposed the volume in 2011, it indicated.

Officials from the American Petroleum Institute and the American Fuel & Petrochemical Manufacturers criticized the Sept. 14 move. “EPA’s mandate will unnecessarily raise the cost of making diesel fuel,” API Downstream Group Director Bob Greco said.

“This is bad public policy that could burden consumers and businesses already pressed with higher energy costs,” he maintained. “By picking energy winners and losers, EPA takes away consumer choice and further threatens public acceptance of biofuels.”

AFPM Pres. Charles T. Drevna said the trade association submitted comments and met with White House Office of Management and Budget officials to outline problems associated with increasing the biodiesel minimum beyond the statutory 1 billion gal.

“Today’s decision will force consumers to pay almost $500 million more next year for diesel fuel and is yet another example of the Obama administration putting politics ahead of American consumers,” Drevna noted, adding, ““Given the exorbitant cost of biodiesel, its poor performance qualities, significant fraud in the biodiesel industry, and the drought facing our nation’s farmers and ranchers, this is a bad decision at the wrong time.”

Contact Nick Snow at nicks@pennwell.com.

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