The bio-diesel mandates require oil companies to enhance biofuel volume in diesel fuel blends by 30% from 1 billion gallons to 1.28 billion gallons, beginning January 2013.
Representing the country’s oil companies and refiners, the American Petroleum Institute initiated action against EPA citing an ‘unworkable’ nature of the mandate that could increase production costs.
API also reiterated existing fraud in the biofuel credits system, implemented to enable companies meet requirements, leading the producers to observe caution to purchase credits.
Additionally, a petition had been filed against EPA to review and scale back the increase in biofuels volumes, besides a call to repeal the renewable fuels standard.
Renewable fuels standard determines biofuel volumes for diesel and gasoline, primarily to reduce greenhouse gas emissions, and the EPA had earlier rejected a request for a waiver.
