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API highlights negative effect of ethanol mandate on consumers

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Hydrocarbon Engineering,

Increasing the volume of higher ethanol fuel blends through this federal mandate is irresponsible and could put consumers on the hook for unnecessary repairs bills, API Downstream Group Director Frank Macchiarola said following EPA’s release of the 2017 RFS mandates on 23 November.

“We are disappointed that EPA has taken a step backwards with this final rule,” said Macchiarola. “The RFS mandate is a bad deal for the American consumer. Today’s announcement only serves to reinforce the need for Congress to repeal or significantly reform the RFS. Democrats and Republicans agree this programme is a failure.”

API supports the Flores-Welch RFS reform bill, which has a wide range of bipartisan co-sponsors now at 117 members of the House, and the organisation along with other groups have increased the call for lawmakers to act.

According to the Congressional Budget Office consumers could pay up to US$0.26 more per gallon at the pump, if EPA fails to waive the volumes as Congress intended and 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.

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