The American Petroleum Institute has filed a lawsuit in D.C. Circuit Court challenging volume requirements set down as part of the Renewable Fuel Standard. The group claims that the U.S. Environmental Protection Agency has set "unrealistic ethanol mandates for 2013" and calls the move bad policy.
In a press statement, Harry Ng, API vice president and general counsel, says, "EPA issued this year's requirements nine months late and has once again mandated significantly more cellulosic ethanol than is available in the marketplace." Petroleum companies can be fined by EPA for not meeting RFS requirements.
API says the 2013 RFS requirements were not issued until August 2013, despite November 2012 deadline. EPA also mandated use of 4 million gallons of cellulosic ethanol this year, but only 142,000 gallons have been available for refiners to blend so far. Earlier this year a U.S. Court of Appeals ruling rejected 2012 EPA mandates for cellulosic biofuels - for the same reason.
Ng says this latest move for 2013 are "an example of why EPA can't be relied upon to implement the RFS effectively and in the interest of consumers. Ultimately, Congress must fully repeal this unworkable and costly mandate."
Growth Energy President Tom Buis issued a statement to the filing: "This latest move comes as no surprise. Big Oil is doing, and continues to do everything possible to undermine the RFS and prevent competition in the marketplace from higher blends of renewable fuel."