Repercussions of high ethanol mandates

“The EPA must do more to ensure Americans have access to fuels they want and that they can safely use in their vehicles, until Congress can repeal or significantly reform the outdated renewable fuel standard” (RFS) according to API President and CEO, Jack Gerard, following the EPA’s release of the 2014, 2015, and 2016 RFS mandates.

“EPA has taken a significant step in the right direction by using its waiver authority to lower ethanol mandates, acknowledging the market limitations of the ethanol blend wall. However, the agency must do more to protect consumers. EPA’s final rule relies on unrealistic increases in sales of higher ethanol fuel blends despite the fact that most cars cannot use them. Motorists have largely rejected these fuels.”

The congressional budget office found that consumers could see rising fuel prices if EPA attempts to force more than 10% ethanol into gasoline. API asked EPA to set the final ethanol mandate to no more than 9.7% of gasoline demand to help avoid the 10% ethanol blend wall, while meeting strong consumer demand for ethanol free gasoline.

“It’s confusing that the administration is pushing corn ethanol at the same time they pursue a climate agenda in Paris to lower greenhouse gas emissions,” Gerard said. “Data from EPA, Environmental Working Group, and numerous academics show corn ethanol emits more greenhouse gases than gasoline. Furthermore, the White House recently assigned the environmental benefits of the RFS at US$0 but the economic costs as high as US$595 million annually.

“Finally, we are concerned that EPA is mandating more biodiesel for 2014 and 2015. Obviously, refiners have already made their compliance decisions for these years. EPA needs to provide a 14 month lead time specifically required by Congress before increasing biodiesel mandates.

“This announcement makes it clear that, in order to protect consumers, Congress must step in to repeal or significantly reform the RFS. Members on both sides of the aisle agree this program is a failure, and we are stepping up our call for Congress to act.”

Adapted from press release by Francesca Brindle

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/01122015/epa-needs-to-protect-consumers-from-high-ethanol-mandates-1847/