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) .

Justin Loiseau has no positions in the stocks mentioned above. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo.

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