U.S. oil, gas group files lawsuit over EPA ethanol requirement

WASHINGTON (Reuters) - A major U.S. oil and gas lobbying group on Tuesday said it filed a lawsuit in District of Columbia Circuit Court challenging the Environmental Protection Agency's renewable fuel volume requirements for 2013.

The American Petroleum Institute said EPA's mandate, not issued for 2013 until August, demanded the use of far more cellulosic ethanol - a fuel made from plant materials like wood and grasses - than is available in the marketplace.

In August the API asked the Obama administration to ease the federal biofuel mandate in 2014, citing the potential for major economic harm if ethanol targets exceeded 10 percent of gasoline demand.

(Reporting by Ros Krasny; Editing by Gerald E. McCormick)