November 28, 2012
The American Petroleum Institute (API) announced Tuesday that it is suing the U.S. Environmental Protection Agency (EPA) for its mandate that 1.28 billion gallons of biodiesel be used in 2013. The order represents a 28% increase from 2012's requirement, and is described by the Institute as "overzealous" and "unworkable."
Bob Greco, API downstream director, is quoted in the trade group's press release as saying that "EPA admitted the costs of increasing the biodiesel volume requirement for 2013 outweighed the benefits by as much as $425 million." Greco also said fraudulent biofuel credits have "plagued the system since last year" and invalid renewable fuel credits represent between 5% and 12% of the biodiesel market.
API is a national trade association whose mission is to "influence public policy in support of a strong, viable U.S. oil and natural gas industry." Its members include ExxonMobil (NYSE: XOM ) , ConocoPhillips (NYSE: COP ) , Kinder Morgan (NYSE: KMP ) , Occidental Petroleum (NYSE: OXY ) , and Cheseapeake Energy (NYSE: CHK ) .
More Expert Advice from The Motley Fool
Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company's management and spiraling debt picture. While these issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential
, you're invited to check out The Motley Fool's brand new premium report on the company. Simply click here now
to access your copy, and as an added bonus, you'll receive a full year of key updates and expert guidance as news continues to develop.