API President and CEO Jack Gerard has said that the administration’s decision to punt on this year’s RFS standard is a clear demonstration to Congress that the RFS has become completely unworkable and must be repealed.
Gerard said, ‘the rule is already a year overdue and the administration has no intention of finalising this year’s requirements before the year ends. It is unacceptable to expect refiners to provide the fuels Americans need with so much regulatory uncertainty. This is an example of government at its worst. The RFS was flawed from the beginning, horribly mismanaged, and is now broken. The only real solution is for Congress to scrap the program and let consumers, not the federal government, choose the best fuel to put in their tanks. Failure to repeal could put millions of motorists at risk of higher fuel costs, damaged engines, and costly repairs.’
Gerard cited a Congressional Budget Office report that predicts higher gasoline and diesel costs under higher ethanol mandates. E15, a fuel blend with 15% ethanol, can damage engines and cause vehicles that use it to break down, according to Coordinating Research Council’s (CRC) testing. Auto manufacturers have said they will not honour warranties when E15 causes damage.
The Obama Administration’s decision to further delay issuing the 2014 Renewable Volume Obligations (RVOs) is a gross dereliction of responsibility that leaves fuel refiners and the biofuels industry alike to navigate a course of ambiguity. The announcements of 21 November indicate the that Administration plans to continuously mismanage this program in a manner that equates to playing Russian roulette with the nation’s fuel supply at the American consumer’s ultimate expense. The Administration’s inaction demonstrates once again that the non-functioning RFS program is irreparably broke. AFPM calls upon Congress to expeditiously resume work on repealing or significantly reforming the RFS. In the meantime, AFPM will seek legal intervention.
‘For three years in a row, the Administration has thumbed its nose at Congress and ignored a crystal clear statutory deadline to issue RVOs by November 30 of the preceding year. For this reason, AFPM today filed a notice of intent to sue EPA over its failure to issue the 2014 RFS regulations, which has languished at the White House Office of Management and Budget since August 22, 2014.’
Edited from press releases by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/24112014/industry-bodies-api-afpm-on-rfs/