The American Petroleum Institute filed a lawsuit in the U.S. Court of Appeals for the District of Columbia late Monday against the Environmental Protection Agency for its decision to mandate the use of 1.28 billion gallons of biodiesel in 2013, a nearly 28% increase from the 2012 requirement of 1.1 billion gallons.
API also filed a petition for administrative reconsideration of the 2013 biodiesel mandate with EPA.
Bob Greco, API group downstream director, said EPA's mandate is "overzealous" and "unworkable."
"In its final rule, EPA admitted the costs of increasing the biodiesel volume requirement for 2013 outweighed the benefits by as much as $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," Greco said.
Greco said the EPA has uncovered more than 140 million invalid renewable fuel credits, known as RINs, generated by three biodiesel companies, representing between 5 and 12% of the biodiesel market. He added that the problem will have an impact on the biodiesel marketplace, making it more difficult for companies to comply with EPA's mandate.
API has also voiced concern about the Renewable Fuels Standard. Greco said Tuesday the RFS is also "unworkable" and renewable fuels would continue to blend ethanol without the assistance of the RFS.