CEO DATELINE - Associations strike deal with EPA in biofuels lawsuit
CEO DATELINE - Associations strike deal with EPA in biofuels lawsuit
- April 13, 2015 |
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Walt Williams
Rival trade groups agree agency should be held to deadline
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The Environmental Protection Agency will set a hard deadline for establishing the amount of ethanol that must be blended with gasoline under an agreement with two oil and gas associations that sued the agency on the matter.
The American Fuel & Petrochemical Manufacturers and American Petroleum Institute said April 10 they had entered into a consent degree with EPA to finalize "long overdue" rules implementing the federal Renewable Fuel Standard, which requires ethanol and biodiesel to be blended with fuels used for transportation.
Both associations have long opposed the Renewable Fuels Standard, saying it is a costly mandate that does little to protect the environment despite its supporters' claims. The groups sued EPA in March because it kept delaying finalizing the rules. Now with the agreement, the agency must issue the final rules for 2014 and 2015 by Nov. 30.
"While we are pleased that we were able to negotiate a deadline that requires EPA to issue the overdue RFS rules, we remain concerned with the government's implementation of this broken program," AFPM General Counsel Rich Moskowitz said. "EPA's failure to comply with the statutory deadlines injures refiners and exacerbates the problems associated with this unreasonable government mandate."
The Renewable Fuels Standard has its supporters, but even they welcomed the news that EPA would stop putting off finalizing blending requirements. The Biotechnology Industry Organization said the delays had "chilled investment" in biofuels. Growth Energy, which represents ethanol producers, said the hard deadline establishes certainty for its industry.
"Additionally, while not part of the consent decree, we are pleased to see that the EPA has committed to finalizing the 2016 RFS RVO numbers this year as well," Growth Energy CEO Tom DeBuis said. "By taking this action, they are ensuring that the RFS is back on a path to certainty for the biofuels industry, providing the necessary guidance for the industry to continue to thrive and advance alternative fuel options for American consumers."