API files legal challenge to US renewable fuels standard

29 March 2010 21:53  [Source: ICIS news]

HOUSTON (ICIS news)--The American Petroleum Institute (API) trade association on Monday filed a lawsuit challenging the legality of the US Environmental Protection Agency's (EPA) new renewable fuel standards, calling the new regulations' retroactive nature “unreasonable.”

The API asked the US Court of Appeals in Washington, DC to review the EPA’s mandate, which starts on 1 July.

The new regulations call for 13bn gal of renewable fuels to be blended into the nation’s fuel supply in 2010, an amount that will grow to 36bn gal by 2022. Due to the year-and-a-half delay in implementing the rules, blenders will also have to include 2009’s mandated 11bn gal of renewable fuels this year.

“Our basic issue is its retroactive nature,” said API’s fuels issues manager Al Mannato. “We feel that’s unfair. If it began 1 July, we wouldn’t have a problem.”

The EPA declined to comment on the lawsuit pending further review. 

The API represents about 400 corporations in the petroleum industry.

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