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EPA’s latest biofuel volumes reflect a broken Renewable Fuel Standard

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WASHINGTON, November 30, 2018 – Today the American Petroleum Institute said EPA’s final ethanol volumes for 2019 and biodiesel volumes for 2020 are an annual reminder that the Renewable Fuel Standard is broken.

“EPA’s latest biofuel mandate that increases ethanol volumes in our fuel supply should concern consumers,” said API Vice President of Downstream and Industry Operations Frank Macchiarola. “Automakers have warned that increased blends of ethanol such as E15 could void car warranties. Testing found that E15 could harm engines and fuel systems in millions of cars. About 75 percent of the vehicles on the road today were not built for E15 and consumers could potentially face costly repair bills.

“Implementing this broken program year after year simply doesn’t make sense. We need a comprehensive legislative solution that sunsets the RFS.  The reality is that outdated assumptions made at the inception of the program, market forces, and technological innovations in the oil and natural gas industry have combined to necessitate a new policy framework.

“The waivers EPA has used in attempt to make this broken program function have triggered the agency’s obligation to ‘reset’ the volume tables Congress set back in 2007.  Until Congress can fix the program, EPA should reset the RFS obligations for ethanol below 9.7 percent of gasoline demand, to allows for E0 sales and to recognize the vehicle and infrastructure constraints that limit the ability to use E15 and E85”.

API is the only national trade association representing all facets of the natural gas and oil industry, which supports 10.3 million U.S. jobs and nearly 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 47 million Americans.

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