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Unworkable biodiesel mandate

Hydrocarbon Engineering,

The API has filed a lawsuit in the US Court of Appeals for the District of Columbia against the EPA. The API is filing against the EPA’s decision to mandate the use of 1.28 billion gal. of biodiesel in 2013, a 28% increase from 2012. API has also filed a petition for administrative reconsideration of the 2013 biodiesel mandate with the EPA.


‘EPA’s overzealous 2013 biodiesel mandate is unworkable, could raise the costs of making diesel fuel, and should be reduced,’ said Bob Greco, API group downstream director. ‘In its final rule, EPA admitted the costs of increasing the biodiesel volume requirement for 2013 outweighed the benefits by as much as US$ 425 million. Furthermore, fraudulent biofuel credits that have plagued the system since last year and have yet to be resolved could inhibit industry’s ability to meet EPA’s higher biodiesel mandate.’

The EPA has uncovered more than 140 million invalid renewable fuel credits (RINs) generated by three biodiesel companies, representing between 5 and 12% of the biodiesel market.

‘The fraudulent RIN problem is having, and will continue to have, significant impacts on the biodiesel marketplace that make it more difficult for companies to comply with EPA’s mandate,’ Greco concluded.

Adapted from press release by Claira Lloyd.

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