More oil industry attack: U.S. oil industry suing EPA as a result of quotas for cellulosic biofuels
U.S. EPA (Environmental Protection Agency ) has been sued as a result of the quotas imposed on American oil companies under US Renewable Fuels Standard (a law) RFS2 biofuels from cellulose is considered unrealistic .
The oil companies argue that there is not near as much biofuels made ​​from cellulose (second generation biofuels ) available on the market for quotas to be met . If quotas are not met, penalties must be paid in relation to the amount that is taken to meet quota.
USA also has ambitious quotas for low blend ethanol and biodiesel from crops and another quota for ” advanced biofuels, ” which in practice meant ethanol from sugar cane.
The latter ratio has led to a trade where sugar cane ethanol from Brazil exported to the United States. Corn Ethanol from United States , in turn, exported to Brazil in order to cater to the domestic market.