EPA sued over biodiesel mandate for 2013

An energy trade group in the United States announced that it filed a lawsuit against the EPA, challenging what it said was an "overzealous" biodiesel mandate.

The American Petroleum Institute said it filed a lawsuit in the U.S. Court of Appeals for the District of Columbia challenging an increase for the biodiesel mandate for 2013. The Environmental Protection Agency called for a 28 percent increase year-on-year for biodiesel.

Bob Greco, director of downstream operations for API, said biodiesel requirements are too expensive to support.

"EPA's overzealous 2013 biodiesel mandate is unworkable, could raise the costs of making diesel fuel and should be reduced," he said in a statement.

The EPA in September increased from 1 billion gallons to 1.28 billion gallons a target volume for biomass-based diesel for 2013 under the Renewable Fuel Standard.

Last week, the American Fuel and Petrochemical Manufacturers group filed a petition calling on the EPA to reconsider the 2013 mandate. Some in the agricultural sector said the requirements would hurt them financially because of low corn yields brought on by drought.

When the EPA set the limits, however, the National Biodiesel Board said the use of biofuels would boost U.S. energy security that's vulnerable to extreme fluctuations on the global petroleum market.