API statement on its lawsuit challenging EPA's RFS2 rule

WASHINGTON, March 29, 2010—The American Petroleum Institute issued the following statement on its lawsuit filed today with the U.S. Court of Appeals for the District of Columbia challenging the Environmental Protection Agency’s Renewable Fuel Standard 2 (RFS2) rule, finalized March 26. The rule, which missed Congress’ deadline by a year and a half, combines the 2009 and 2010 biomass-based diesel volumes and makes the entire rule retroactive to January 1, 2010:

“While the U.S. oil and natural gas industry recognizes and appreciates the role of ethanol and other biofuels in the fuel marketplace, we are deeply concerned that the Environmental Protection Agency’s final RFS2 rule could result in higher consumer costs. By setting retroactive requirements, refiners, and ultimately consumers, will be penalized for EPA's inability to get this rule out on time as directed by Congress.

“We believe this rule unlawful and unfair, and we filed a petition for review in the U.S. Court of Appeals for the District of Columbia to challenge the legality of EPA’s actions. EPA made the rule effective on July 1, 2010 while setting unreasonable mandates on refiners that reach back to 2009 for bio-based diesel and to January 1 for the other advanced biofuels.

“The U.S. oil and natural gas industry is the biggest consumer of ethanol and other biofuels. Almost 80 percent of all gasoline now produced in the United States contains ethanol. API supports a realistic and workable RFS.”

Updated: March 29, 2010