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RFS reform, positive for consumers

Hydrocarbon Engineering,

The Corn Ethanol Mandate Elimination Act introduced by the US Senate on 12th December is being said by Bob Greco, API Downstream Group Director, to be demonstrating the growing, bipartisan concerns that ethanol mandates could harm consumers and put the US economy at risk.


‘Repealing corn ethanol mandates is the first step toward protecting consumers from outdated and costly public policy. EPA’s proposal to lower the 2014 mandates could provide a stopgap, but Congress needs to deliver a long term solution to provide certainty for consumers. Requirements set back in 2007 could soon push ethanol levels in gasoline above what is safe for most cars on the road today. Ultimately, we need a full repeal of the RFS to put consumers in charge of choosing the best fuel for their vehicles. We cannot allow mandates that harm consumers and put our nation’s economy at risk.’

If left unchanged

Millions of cars could be severely damaged by fuel blends that contain more than 10% ethanol, according to studies by the Coordinating Research Council, and automakers have said higher ethanol blends would void car warranties.

If left unchanged, the RFS could cause severe fuel rationing that would lead to a US$ 770 billion decrease in US GDP that would translate to a US$ 580 billion decrease in take home pay for American workers by 2015, according to a study by NERA economic consulting.

Adapted from a press release by Claira Lloyd.

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