The jury recognized the unavailability of cellulosic biofuels and agreed with the refiners that the implementation of the mandate was impractical.

EPA’s mandate directed refiners to use 8.65m gallons of biofuels in the year whereas the actual production stood at 20,000 gallon.

Failure to comply with the mandate attracted $8m in penalties, forcing the refiners to seek an intervention from the courts, reported Bloomberg.

"Apart from their role as captive consumers, the refiners are in no position to ensure, or even contribute to, growth in the cellulosic biofuel industry," the court ruled.

American Petroleum Institute director Bob Greco welcomed the ruling and said that the EPA will now be compelled to adopt a more realistic approach in setting future mandates.

"The court has provided yet another confirmation that EPA’s renewable fuels program is unworkable and must be scrapped," added Greco.