United States petroleum industry groups expressed opposition to a recent Environmental Protection Agency decision continuing the requirement for cellulosic biofuels.

Last week, a joint January 20 petition by the American Fuel and Petrochemical Manufacturers, American Petroleum Institute and Western States Petroleum Association requesting the agency to waive the 2011 cellulosic biofuel volume mandate was denied by the E.P.A.

But the groups say that the required 8.65 million gallons of cellulosic biofuels is “unachievable” due to lack of commercial supply.

“E.P.A.’s standard is divorced from reality and forces refiners to purchase credits for cellulosic fuels that do not exist,” said A.P.I. director of downstream and industry operations Bob Greco.

The groups said the E.P.A.’s mandate effectively becomes a tax on manufacturers that could ultimately burden consumers.

Refiners were required to use 6 million gallons of cellulosic biofuels in 2011. Though no cellulosic biofuels were produced that year, they were forced to pay $6.8 million to the E.P.A. for waiver credits needed to comply with the mandate.

“Congress created a waiver provision in the [Renewable Fuels Standard] to address this exact situation," said American Fuel and Petrochemical Manufacturers president Charles T. Drevna.

The American Petroleum Institute said it supports a realistic and workable standard, but recommends that the E.P.A. base their predictions on at least two months of actual cellulosic biofuel production that year before setting mandates for the following year. – EcoSeed Staff