US oil refining trade group files lawsuit challenging biofuel mandates
The American Fuel and Petrochemical Manufacturers trade group sued the EPA over biofuel mandates, claiming they will raise compliance costs and fuel prices.Summary
The American Fuel and Petrochemical Manufacturers (AFPM) trade group filed a lawsuit in the D.C. Circuit Court on Friday to challenge the Environmental Protection Agency's (EPA) final biofuel blending mandates under the Renewable Fuel Standard (RFS). The mandates, finalized in late March, require oil refiners to blend billions of gallons of ethanol and other biofuels or purchase Renewable Identification Numbers (RINs). AFPM CEO Chet Thompson described the mandates as the largest and most expensive RFS iteration in history and the single most expensive regulation of President Donald Trump's second term. The trade group estimates compliance could cost over $106 billion over two years, or 26 to 35 cents per gallon. AFPM argues the mandates exceed current U.S. production capacity, potentially forcing refiners to import fuel and feedstocks, which would increase costs passed to consumers. Additionally, the group warned that the RIN bank is being rapidly drawn down and could be depleted by 2027, leaving few options for compliance other than reducing transportation fuel supply.
(Source：Reuters)