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API comments on biofuel mandates

Hydrocarbon Engineering,

API Senior Fuels Policy Advisor Patrick Kelly has said that the EPA must roll back rising ethanol mandates that put consumers at risk, until Congress can permanently repeal the program.

‘Our major concern is that ever increasing biofuel mandates could harm consumers, damage their automobiles, and create supply shortages that severely harm our still fragile economy…A study by NERA Economic Consulting shows higher ethanol mandates could lead to fuel rationing and supply shortages that, by 2015, could drive up the cost of gasoline by 30% and the cost of diesel by 3000%. And, livestock groups say the mandate, which now diverts more than 40% of the US corn crop from food to fuel, has been the leading driver of food price increases we’ve seen in recent years.

‘EPA must lower the 2014 ethanol mandate to no more than 9.7% of projected gasoline demand. This will help reserve the choice of ethanol free gasoline for consumers who want it. Also, EPA must bring their mandates closer to reality on cellulosic biofuels, which do not exist in commercial quantities. Finally, EPA must finalise these requirements as quickly as possible to get the annual rulemaking process back on track. By making these adjustments, EPA can create a welcome stopgap…But ultimately, we need a long term solution for consumers from Congress.’

Adapted from press release by Claira Lloyd

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