Suit highlights what is wrong with Obama EPA

Houston Chronicle:

A government mandate meant to boost renewable fuel use has left gasoline makers on the hook for buying biofuels that don't exist, a leading energy industry trade and lobbying group alleges in a federal lawsuit.

In the suit filed late Tuesday in the U.S. Court of Appeals for the District of Columbia, the American Petroleum Institute argues that the Environmental Protection Agency's requirements are unreasonable.

"EPA's unattainable and absurd mandate forces refiners to pay a penalty for failing to use biofuels that don't even exist," Bob Greco, the API's director of downstream and industry operations, said in a statement.

The EPA said it is reviewing the lawsuit related to cellulosic biofuel - ethanol fermented from products other than corn, which is the main source of U.S. biofuel now.

The agency has said that non-food material including wood chips, wood residue, grasses, agricultural residue, animal waste and municipal solid wastes also can be used to produce biofuel.

Refiners add ethanol to motor fuel to reduce emissions and to stretch the supply of gasoline and other petroleum-based fuels.

The EPA said it is requiring the purchase of cellulosic biofuel because of a policy mandate to stimulate production of that and other alternative fuels.

This year the agency is requiring gasoline producers and importers to displace 0.006 percent of their total gasoline production with the purchase of cellulosic biofuel.

The requirement is based on projections that nearly 8.7 million gallons of cellulosic biofuel will be produced this year.

As is the case with other EPA-supported biofuel incentive programs, biofuel makers can sell a credit to gasoline producers for each gallon of biofuel they make, and the gasoline makers can use the credits to meet their renewable fuel obligations.

But cellulosic biofuel never has generated any credits, according to the agency.

In the absence of credits, the EPA allows gasoline producers to purchase cellulosic biofuel waiver credits at 78 cents each to meet obligations at the end of the year.

Oil and gas lobbyists argue that the incentive program will require refiners and importers to pay for 6.6 million gallons of the "nonexistent biofuel."

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This is an administration that has granted waivers left and right for far less onerous requirements.  They just want to punish energy companies for not buying something that does not exist.  That is an unreasonable opinion and it should be indefensible.  There is also a good reason why there is not cellulosic biofuels to purchase.  They cannot be produced profitably.  The only people making money off this scheme are the scam artist selling credits for something that does not exist.

This is a scandal.  It is too bad that many in the media are ignoring just how scandalous it is.