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Refinery executive meeting held to discuss RFS repeal

Hydrocarbon Engineering,

On Wednesday 26th June, the API hosted a series of meetings in Washington DC for refining executives with administration officials and lawmakers. The meeting’s topic was the need to end the nation’s unworkable biofuels mandate known as the RFS.

Jack Gerard, API President and CEO comments

‘A growing chorus of concerned groups is urging Congress to repeal the RFS before the mandate potentially puts consumers in harm’s way, hurts the economy, and disrupts the nation’s fuel supply. The biofuels mandate was originally intended to reduce our dependence on foreign oil, but increasing domestic production of oil is accomplishing that goal.’

Gerard said that the industry is approaching the ethanol blend wall, and that higher amounts of ethanol required to be blended into each gallon of gasoline under the RFS could be unsafe for most vehicles on the road today. 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.

‘The administration must immediately reduce these dangerously high ethanol mandates before they harm consumers. The long term solution, however, is for Congress to repeal the increasingly unworkable RFS.’

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

Adapted from press release by Claira Lloyd.

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