Federal Court Affirms EPA's Authority to Impose Renewable Fuels Mandate

The U.S. Court of Appeals for the District of Columbia has rejected a legal challenge to the Environmental Protection Agency's authority to require renewable fuels to be blended into transportation fuels under the current energy laws.

The U.S. Court of Appeals for the District of Columbia has rejected a legal challenge to the Environmental Protection Agency's authority to require renewable fuels to be blended into transportation fuels under the current energy laws. The ruling denies petitions by the National Petrochemical and Refiners Association and the American Petroleum Institute to overturn an EPA rule implementing the renewable fuel standard that took effect July 1 but covered all of 2010.

The rule implementing the renewable fuel standard was announced in February 2010, published in March, and became effective July 1.

If successful, the industry lawsuit would have limited the applicability of the renewable fuel standard in 2010 and reduced the demand for renewable fuel.

Under the Energy Independence and Security Act, U.S. motor fuel supply is required to include 36 billion gallons of ethanol or other renewable fuels by 2022. In 2010, the law requires the industry to supply 12.95 billion gallons of renewable fuel. The final rule implemented these requirements beginning Jan. 1, 2010.

The law requires EPA to issue the rule in final form by Dec. 17, 2008. In part due to the change in administrations, EPA did not propose a rule until May 2009.

The most recent action is unrelated to another lawsuit filed in December week by a coalition of automobile manufacturers and engine makers against EPA over a rule that would allow use of gasoline with up to 15 percent ethanol in 2007-model vehicles and newer. 

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