Oil group sues over law on scarce biofuel

For the second time in five months, the U.S. government is being sued to overturn a law that forces oil refiners to use a scarce biofuel.

Under the federal Renewable Fuel Standard, refineries were required by the Environmental Protection Agency to use 6.6 million gallons of cellulosic biofuels – a fuel made from non-grain sources such as wood chips – in 2011.

The U.S. oil industry’s leading lobby group, The American Petroleum Institute filed a lawsuit in federal court in Washington saying no commercial quantities of the biofuel were available. The industry is penalized if it does not buy the fuel.

“The mandate is effectively an added tax on gasoline manufacturers that could ultimately burden consumers,” said API Director of Downstream and Industry Operations Bob Greco.

via Oil group sues over law on scarce biofuel | Reuters.

Categories: Energy, Policy, Transportation