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API: EPA incapable of implementing the RFS, time for repeal

Carlton Carroll | 202.682.8114 |

WASHINGTON, November 21, 2014 – API President and CEO Jack Gerard said the administration’s decision to punt on this year's RFS standards is a clear demonstration to Congress that the Renewable Fuel Standard has become completely unworkable and must be repealed.

“The rule is already a year overdue and the administration has no intention of finalizing this year's requirements before the year ends,” Gerard said. “It is unacceptable to expect refiners to provide the fuels Americans need with so much regulatory uncertainty. This is an example of government at its worst.

“The Renewable Fuel Standard was flawed from the beginning, horribly mismanaged, and is now broken. The only real solution is for Congress to scrap the program and let consumers, not the federal government, choose the best fuel to put in their tanks. Failure to repeal could put millions of motorists at risk of higher fuel costs, damaged engines, and costly repairs.”

Gerard cited a Congressional Budget Office report that predicts higher gasoline and diesel costs under higher ethanol mandates. E15 – a fuel blend with 15 percent ethanol – can damage engines and cause vehicles that use it to break down, according to Coordinating Research Council’s (CRC) testing (here and here). Auto manufacturers have said they will not honor warranties when E15 causes damage.

API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 600 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 20 million Americans.