Congress must protect consumers from high ethanol mandates

Washington, June 22, 2016 – API Downstream Director Frank Macchiarola said lawmakers need to fix the outdated, broken Renewable Fuel Standard program. Macchiarola said today’s House RFS hearing shows Congress is listening to consumers who don’t want higher ethanol blends in their vehicles.

“Consumers’ interest should come ahead of ethanol interests,” said Macchiarola. “Higher ethanol blends, such as E15, can damage engines and fuel systems – potentially forcing drivers to pay for costly repairs, according to extensive testing by the auto and oil industries.”

According to AAA, approximately 90 percent of vehicles on the road today were not designed for E15. And automakers warn that using E15 could result in a voided new car warranty.

“The RFS could also impact prices at the pump. The Congressional Budget Office found that consumer gas prices could rise by 26 cents per gallon unless EPA lowers RFS mandates.

“We need Congress to repeal or significantly reform the RFS. Members on both sides of the aisle agree this program is a failure, and we are stepping up our call for Congress to act.”

API is urging EPA to set the final ethanol mandate at no more than 9.7 percent of gasoline demand to ensure ethanol levels in gasoline stay below the 10 percent blend wall and meet strong consumer demand for ethanol-free gasoline.

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 650 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 30 million Americans.