Oil, Gas Lobby Says RFS Could Lead to Higher Prices at the Pump

Source: By ASHA GLOVER, Morning Consult • Posted: Thursday, July 14, 2016

The American Petroleum Institute on Monday said the Environmental Protection Agency’s proposed increases to ethanol volumes under the Renewable Fuel Standard could increase gas prices and possibly cause engine damage to vehicles.

API Downstream Group Director Frank Macchiarola said RFS is a “broken” policy and called on Congress to pass bipartisan legislation to fix it.

“Instead of providing relief to consumers, EPA’s biofuel proposal for 2017 moves us closer to breaching the blend wall — the point at which the RFS requires more ethanol in the fuel supply than can be safely blended as standard E10 gasoline,” Macchiarola told reporters when discussing comments API submitted to EPA on its proposed 2017 Renewable Fuel Standard renewable volume obligations.

“To protect consumers and align fuels policy with market realities, EPA should set ethanol levels at no more than 9.7 percent of gasoline demand to ensure that the amount of ethanol in gasoline stays below the 10 percent blend wall. Additionally, it is imperative that we maintain fuel choices for the growing number of consumers who prefer ethanol-free gasoline,” he added.

The Renewable Fuels Association also submitted comments to the EPA on the proposal on Monday, instead calling for the agency to raise the requirements for conventional renewable fuel volumes.