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API calls for congressional reform of RFS

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Hydrocarbon Engineering,

The American Petroleum Institute (API) has welcomed the US Environmental Protection Agency’s (EPA) proposal to slightly lower the total biofuel volume for 2018.

However, the API warns that the move does not go far enough. It contends that the primary goals of the Renewable Fuel Standard (RFS) have been achieved by market forces and technological innovations, rather than by ethanol mandates. As such, the API believes tat the policy only has hypothetical benefits and that it has added costs to consumers.

The API's Downstream Group Director, Frank Macchiarola, said: “Studies show that higher ethanol volumes under the RFS would raise fuel costs for consumers and damage car engines, […] Today’s proposal reaffirms the importance of RFS reform, as it is essential that Americans have access to fuels they want and can safely use in their vehicles. Congress must fix this broken, outdated programme.”

Higher ethanol blends can damage engines and fuel systems, according to extensive testing by the auto and oil industries – potentially forcing drivers to pay for costly repairs. The Congressional Budget Office found that consumer gas prices could rise by up to 26 cents per gallon unless the EPA lowers RFS mandates. The API is urging the EPA to set the final ethanol mandate at no more than 9.7 percent of gasoline demand to help avoid the 10% ethanol blend wall and meet strong consumer demand for ethanol-free gasoline.

Mr Macchiarola continued: “The RFS mandate is bad for consumers, and it’s clear that the solution is for Congress to significantly reform this mandate. Members on both sides of the aisle agree this program is a failure, and we are stepping up our call for Congress to act.”

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Downstream news American Petroleum Institute news