American Petroleum Institute: EPA must do more to protect consumers from the RFS

American Petroleum Institute Downstream Group Director Frank Macchiarola told reporters on Monday that the EPA must do more to protect consumers from the negative effects of rising ethanol volumes under the Renewable Fuel Standard (RFS).

Macchiarola, speaking during a conference call to discuss comments submitted to the EPA on the 2017 biofuel volume proposal, said that while summer gas prices have reacher their lowest levels in more than a decade, the RFS mandate is increasing ethanol volumes in the nation’s fuel mix, potentially leading to higher prices at the pump and causing engine damage to many cars currently on the road.

“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 said. “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.”

According to the Congressional Budget Office, market disruptions associated with E85 ethanol blends at statutory volumes could cause consumer gas prices to rise by 26 cents per gallon.

“The broken RFS mandate has earned opposition from the Environmental Working Group, anti-hunger group ActionAid, livestock producers, owners of restaurants and convenience stores, as well as members of Congress from both sides of the aisle,” Macchiarola said. “Grassroots advocates submitted more than 513,000 comments to EPA in opposition to the 2017 RFS proposal.

“Any policy that attracts such widespread criticism deserves action, and API is calling on Congress to pass bipartisan legislation to fix this broken RFS policy.”