Challenge against the Renewable Fuels Standard shut down in D.C.'s District Court of Appeals

December 22, 2010 |

In Washington, in a unanimous opinion, the District Court of Appeals for the District of Columbia, the petition by National Petrochemical Refiners Association and the American Petroleum Institute challenging the Renewable Fuels Standard (RFS2) was denied in full. Joining in the decision were Circuit Judges Ginsburg and Garland.
“The NBB is obviously pleased with the Court’s unanimous decision,” stated Manning Feraci, the National Biodiesel Board’s (NBB) Vice President of Federal Affairs. “This wholly validates the U.S. biodiesel industry’s legal position and sends a clear, unambiguous signal to the marketplace that the common-sense renewable goals established in the RFS2 program will be met.”
Petitioners contended three issues:
1. The RFS2 final regulation violated the statutory requirements setting separate biomass-based diesel volume requirements for 2009 and 2010.
2. The RFS2 final regulation was impermissibly retroactive.
3. The RFS2 violated appropriate statutory lead time and compliance provisions.
In a 40-page decision all issues raised by Petitioners were denied in full, which means the RFS2 program as currently being implemented by the Environmental Protection Agency.
“This lawsuit was the final piece of uncertainty creating market disruption for the biodiesel industry. With last week’s reinstatement of the biodiesel blenders’ tax credit and today’s announcement by the court, REG is bullish on the 2011 market for biodiesel demand,” said Gary Haer, Vice President, Sales & Marketing, Renewable Energy Group. “Biodiesel is the nation’s only commercially-available, domestically produced Advanced Biofuel. Today’s decision is an important sign that our nation is moving full-steam ahead to meet our energy independence and greenhouse gas emissions reductions goals.”

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