WASHINGTON, June 29, 2012 – API welcomed the introduction of the Phantom Fuel Reform Act of 2012 by Congressman Jeff Flake (R-AZ) in the U.S. House of Representatives that would eliminate EPA mandates for the use of biofuels that do not yet exist:
“EPA’s mandate is out of touch with reality and forces refiners to pay a penalty for not using imaginary biofuels,” said API Director of Downstream and Industry Operations Bob Greco. “EPA’s unrealistic mandate is effectively an added tax on making gasoline.”
The Clean Air Act requires EPA to determine the mandated volume of cellulosic biofuels each year at “the projected volume available.” However, EPA continues to mandate the use of these fuels even though no company is able to produce them commercially, according to EPA’s own records.
“The fact that EPA continues to mandate these biofuels that do not exist is regulatory absurdity and bad public policy,” Greco said.
API represents more than 500 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.