The American Petroleum Institute (API) filed a lawsuit with the DC Circuit Court challenging the Environmental Protection Agency (EPA) for what API called “unachievable” requirements for use of cellulosic biofuels in the 2012 Renewable Fuel Standard (RFS).
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 gallons of cellulosic biofuels despite a lack of commercial supply of the fuel.
EPA’s standard is divorced from reality and forces refiners to purchase credits for cellulosic fuels that do not exist. EPA’s unrealistic mandate is effectively a tax on manufacturers of gasoline that could ultimately burden consumers. EPA must set the requirement at a realistic volume but they have not. This is regulatory absurdity.—API Director of Downstream and Industry Operations Bob Greco
API recommends that EPA base its 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 whose ability to produce the cellulosic biofuel volumes EPA hopes for is questionable, API says.