Delta Air Lines, through its refinery unit, Monroe Energy, has joined other oil industry trade groups to fight the U.S. biofuel mandate requiring refiners to meet an annual biofuel quota either through production or through the purchase of credits.Through Monroe Energy, Delta has filed a lawsuit in the U.S. Court of Appeals for the District of Columbia Circuit that challenges the EPA’s 2013 renewable fuel requirements, according to Fuel Fix.
Delta Air Lines, through its refinery unit, Monroe Energy, has joined other oil industry trade groups to fight the U.S. biofuel mandate requiring refiners to meet an annual biofuel quota either through production or through the purchase of credits.
Through Monroe Energy, Delta has filed a lawsuit in the U.S. Court of Appeals for the District of Columbia Circuit that challenges the EPA’s 2013 renewable fuel requirements, according to Fuel Fix.
Refiners generate renewable identification numbers, which are compliance credits, for every gallon of biofuel they incorporate. Due to the fact that Monroe is a “merchant refiner,” selling unblended products to wholesale marketers, it must purchase credits, Fuel Fix reports. In its Oct. 4 federal court petition, Monroe claims this forces it to spend millions of dollars acquiring compliance credits at what it calls “artificially inflated” prices.
Refiners have until June 30 to prove they have complied with this year’s biofuel quotas.
Last month, the EPA backed away from its previously mandated targets for U.S. biofuel production by relaxing the proposed levels of ethanol use outlined in its Renewable Fuel Standard (RFS) to address the “E10 blend wall.” The proposal would set ethanol use at 15.21 billion gallons — just under 10 percent of motor-fuel consumption and 16 percent lower than targets established by Congress in 2007 — and also called for public input on the levels of renewable fuels to be blended into gasoline and diesel as required by Congress under the Energy Independence and Security Act of 2007.
In related news, earlier this year Shell and BP broke away from the oil and gas industry’s main trade groups, which are calling for Congress to remove the RFS. Taking a more moderate approach, the companies are instead looking for the eight-year RFS to be modified.
Published Dec 4, 2013 9pm EST / 6pm PST / 2am GMT / 3am CET
Managing Director, Sustainability & Social Impact
Deutsche Bank
Mike Hower is a sustainability communicator and connector committed to helping purpose-driven businesses and people unlock their full potential for positive impact. As founder and principal consultant at Hower Impact, he works with companies to translate sustainability strategy into stories that inform, engage and inspire investors, customers, employees, regulators and other stakeholders in the service of social, environmental and business goals. Through his Impact Hired initiative, he works to connect and engage corporate sustainability professionals at all stages of their careers.
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