August 2, 2012, Washington, DC - US Federal mandates setting minimum usage of biofuels in the nation's fuel supply have landed in court, as the petroleum industry counters that the standards are currently unrealistic, according to a report in Energy & Capital.
By Scott Jamieson
The American Petroleum Institute has sued the U.S. government – the second such lawsuit in less than half a year.
According to the suit, the API claims that no cellulosic biofuels were available for commercial purchase.
This is a problem because under the Renewable Fuel Standard, the EPA
mandated refineries to use at least 6.6 million gallons of the biofuel.
The oil and gas industry has to pay fines if it does not meet that
quota, so non-availability of the fuel for purchase leaves the API
between a rock and a hard place.