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API: EPA Must Reconsider Anti-Consumer RFS Deal

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WASHINGTON, March 12, 2019 –Today, the American Petroleum Institute called EPA’s proposal to facilitate the year-round sale of higher ethanol blended E15 gasoline coupled with changes to Renewable Identification Number (RIN) market a lose-lose for U.S. consumers.

“The administration needs to scrap this anti-consumer policy that exacerbates problems with the failed Renewable Fuel Standard,” said API Vice President of Downstream and Industry Operations Frank Macchiarola. “This proposal is a bad deal for consumers.

“Extending the sale of E15 gasoline to the summer months makes no sense. Studies have shown that E15 gasoline can damage vehicle engines and fuel systems – potentially leaving Americans to pay expensive car repair bills due to bad policy out of Washington. In fact, nearly three out of four vehicles on the road today were not designed for E15. This decision is also contrary to the law as this waiver is in conflict with the clear language of the Clean Air Act. Further, EPA has agreed numerous times that the agency does not have the authority to extend the Reid Vapor Pressure waiver to E15.

“To make matters worse, the agency’s proposed changes to the RINs market, could increase costs for fuel producers and lead to higher prices for consumers. Additionally, the proposed changes move the goal posts for U.S. energy companies that have already made capital investments and business decisions based on the current RFS program. The president asked the EPA to give him a ‘win-win’ deal on the RFS, but this so-called deal only helps the ethanol industry, while exposing the driving public and owners of small power equipment to mis-fueling. Our industry plans to aggressively pursue all available legal remedies to protect consumers from this flawed policy.”

Last month, API released a new RIN Reform study that found the administration’s proposal to reform the market misdiagnoses the problem and provides misguided and counterproductive changes. Previous findings of the EPA, as well as findings by independent analysts, show that gasoline and diesel prices already reflect the cost of obtaining RINs. The study confirms that no significant reform of the current RIN system is needed.

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, 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. API was formed in 1919 as a standards-setting organization. In its first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.