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API: Federal Ethanol Mandate Continues to be a Bad Deal for Consumers

Sabrina Fang | | 202.682.8114

WASHINGTON November 23, 2016 – Increasing the volume of higher ethanol fuel blends through this federal mandate is irresponsible and could put consumers on the hook for unnecessary repair bills, API Downstream Group Director Frank Macchiarola said following EPA’s release of the 2017 RFS mandates on November 23.

“We are disappointed that EPA has taken a step backwards with this final rule,” said Macchiarola. “The RFS mandate is a bad deal for the American consumer. Today’s announcement only serves to reinforce the need for Congress to repeal or significantly reform the RFS. Democrats and Republicans agree this program is a failure.”
API supports the Flores-Welch RFS reform bill, which has a wide range of bipartisan co-sponsors now at 117 members of the House, and the organization along with other groups have increased the call for lawmakers to act.

According to the Congressional Budget Office consumers could pay up to 26 cents more per gallon at the pump, if EPA fails to waive the volumes as Congress intended and attempts to force more than 10 percent ethanol into gasoline. API asked EPA to set the final ethanol mandate to no more than 9.7 percent of gasoline demand to help avoid the 10 percent ethanol blend wall while meeting 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 625 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.