Court rules EPA ethanol mandate "unreasonable"

By CHRISTOPHER DOERING, Gannett Washington Bureau

January 25, 2013

WASHINGTON -- A federal court delivered a defeat to the biofuels industry Friday, ruling the U.S. government exceeded its authority by requiring refiners to purchase cellulosic biofuel despite the fact the next-generation fuel is not commercially available.

The U.S. Court of Appeals for the District of Columbia decided in favor of the American Petroleum Institute when it ruled that the Environmental Protection Agency's process for estimating cellulosic biofuel output "did not take neutral aim at accuracy" and "was an unreasonable exercise of agency discretion."

The court's ruling in effect said the EPA's overly aggressive estimate was set with the goal of promoting the growth of cellulosic fuel to spur investment rather than making an accurate prediction of how much could be produced…….."We agree with API that EPA's 2012 projection of cellulosic biofuel production was in excess of the agency's statutory authority," the three-judge panel said. "We accordingly vacate that aspect of the 2012 RFS rule and remand for further proceedings consistent with this opinion."  To Read More…..