Farm Industry News Blog

API sues EPA over cellulosic biofuels quota

The American Petroleum Institute filed a lawsuit against the EPA this week, arguing that refiners should not have to pay a penalty for failing to use biofuels "that don't even exist." A spokeman for Growth Energy says the oil industry is fighting for the status quo, and should be helping to wean the U.S. off oil imports.


The American Petroleum Institute (API) filed a lawsuit this week against the EPA, saying the agency “should not penalize refiners that fail to use an unreasonably high amount of cellulosic biofuels as these are not produced in the U.S. on a commercial scale.” The group said the EPA had set a quota for gasoline and diesel importers and refiners to either use or purchase credits covering 6.6 million gallons of cellulosic biofuels. The "EPA's unattainable and absurd mandate forces refiners to pay a penalty for failing to use biofuels that don't even exist," said Bob Greco, API's group director of upstream and industry operations.


This is the second time that the API has filed such a lawsuit. “They lost the first time and we think they’re going to lose again,” said Michael Frohlich, press secretary, Growth Energy. Frohlich said that the API “is continuing to fight for the status quo, and is doing nothing to wean the U.S. off an addiction to foreign oil.” Oil imports are estimated to cost U.S. consumers $360 billion annually. This money should be reinvested in America whose hard hit economy could benefit from domestic ethanol production and the 400,000 jobs the ethanol industry has created, Frohlich said.


Frohlich added that with the recent approval for commercialization of E15, the oil industry is starting to see the ethanol industry cut into its market share.


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The Farm Industry News Blog features commentary from Willie Vogt, Daryl Bridenbaugh and Jeff Ryan.

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