“A federal appeals court tossed out the Environmental Protection Agency’s mandates for cellulosic biofuels under the Renewable Fuels Standard, saying the agency erred in its overly optimistic projections for the new energy source.
The U.S. Court of Appeals for the D.C. Circuit sided with the oil industry, saying that EPA rules for cellulosic biofuels were wrong, but it upheld the agency’s refusal to lower the overall volume of advanced biofuels set in the 2012 RFS in a ruling Friday in American Petroleum Institute v. EPA.
EPA sets renewable fuel projections every year that establish the volumes that refiners, importers and blenders must use. For what they don’t — or can’t — buy, industry must purchase credits.
But EPA’s projections for cellulosic biofuels have been wildly off course for several years.