Friday, July 27, 2012

[biofuelwatch] American Petroleum Institute files suit over EPA mandating nonexistent cellulosic fuels

> Oil lobby group challenges renewable fuel mandate
> Posted on July 25, 2012
> by Zain Shauk
> The American Petroleum Institute filed a lawsuit Tuesday claiming
> the government is requiring refiners and gasoline importers to
> purchase renewable fuels that don't exist.
> The lawsuit, which was filed in a federal court in Washington,
> argued that the Environmental Protection Agency's mandates are
> unreasonable, according to the API, an energy industry trade and
> lobbying group.
> "EPA's unattainable and absurd mandate forces refiners to pay a
> penalty for failing to use biofuels that don't even exist," Bob
> Greco, the API's director of downstream and industry operations,
> said in a statement.
> The EPA did not immediately respond to inquiries about the disputed
> renewable – cellulosic biofuel ethanol fermented from products
> other than corn, which is the main source of U.S. biofuel now. The
> agency has said that wood chips, wood residue, grasses, agricultural
> residue, animal waste and municipal solid wastes can also be used to
> produce cellulosic biofuels.
> In 2012, the EPA will require gasoline producers and importers to
> displace 0.006 percent of their total gasoline production with the
> purchase of cellulosic biofuels.
> As is the case with other EPA-supported biofuel incentive programs,
> biofuel makers can sell a credit to gasoline producers for each
> gallon of biofuel they make. But no credits have been generated for
> cellulosic biofuels this year, or ever, according to the EPA's
> website.
> In the absence of credits, the EPA will allow gasoline producers to
> purchase cellulosic biofuel waivers at a cost of 78 cents a gallon
> to meet obligations at the end of the year.
> Oil and gas lobbyists are arguing that the incentive program will
> require refiners and importers to pay for 6.6 million gallons of the
> "nonexistent biofuel."
> The agency has mandated cellulosic biofuel credit purchases since
> 2010, but no credits were available, so companies were required to
> buy waiver credits from the government. In total, the credits have
> cost the industry about $14 million over two years, Greco said in a
> telephone interview.
> "That's, in effect, a tax," Greco said. "We're having to pay for a
> fuel that doesn't exist when the EPA could have adjusted the mandate
> to reflect that reality."
> The API filed a petition with the agency last year, asking the EPA
> to reconsider the 2012 mandates because of the limited availability
> of cellulosic biofuels. The agency has stuck with the mandate, with
> the intent of creating an incentive for more production of the fuel.
> "API supports a realistic and workable (Renewable Fuel Standard) and
> continues to recommend that EPA base its prediction on at least two
> months of actual cellulosic biofuel production in the current year
> when establishing the mandated volumes for the following year," the
> lobbying group said in a statement. "This approach would provide a
> more realistic assessment of potential future production rather than
> simply relying on the assertions of companies whose ability to
> produce the cellulosic biofuel volumes EPA hopes for is questionable."

Rachel Smolker
Biofuelwatch/Energy Justice Network
802.482.2848 (o)
802.735 7794 (m)
skype: Rachel Smolker

respect existence or expect resistance


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Biofuels are a wide range of fuels which are in some way derived from biomass.

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