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Biodiesel mandate changes

Hydrocarbon Engineering,

Bob Greco, API Downstream Group Director has sent a letter to API Administrator Gina McCarthy. In the letter, Greco said that the Clean Air Act explicitly prohibits the US EPA from increasing the biomass based diesel mandate for the 2014 compliance year. Greco also said, ‘the Clean Air Act expressly compels EPA to provide a 14 month lead time when modifying the mandate. Pursuant to the Clean Air Act’s unambiguous language, EPA was required to have finalised any increase to the 2014 biomass based diesel mandate by October 31, 2014. Furthermore, political gamemanship has delayed the 2014 requirements, and as a result EPA’s authority to increase the 2016biomass based diesel standard is soon to pass.’

Greco has pointed out that the administration is considering an increase to the biomass based diesel standard for the 2014 compliance year for political reasons, even though most of the year has already passed.

Greco continued, ‘Congress establishes statutory deadlines for a reason. They provide certainty to the regulated industries. Here, Congress recognised the fundamental difference in setting the biomass based diesel standard and the other biofuel standards by providing the 14 month lead time to give obligated parties sufficient notice to make the necessary operational, logistical, and investment decisions to meet any increase in the biomass based diesel standard.

‘Because this deadline has passed by almost two years, the Clean Air Act prohibits EPA from increasing the biomass based diesel requirement from the 2013 biomass based diesel standard of 1.28 billion gallons.’

Edited from press release by Claira Lloyd

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