Nov 28, 2012 - The American Petroleum Institute (API), a trade association representing the US oil and natural gas industry, called on Congress yesterday to scrap the Renewable Fuel Standard (RFS), which ensures that transportation fuel sold in the US contains a minimum amount of biofuel.
API Downstream Group director Robert Greco told a press briefing that the RFS should be repealed because it was unworkable and would require higher concentrations of ethanol in gasoline that could damage vehicles. The biofuel industry hurried to oppose such claims, saying that API's move was no news but another desperate attempt to protect the status quo.
"There is a fundamental flaw in the enabling statute so the only way to fix it is to scrap the law and start over if Congress believes such a program is necessary," Greco said. He also said that the need of a RFS to promote energy independence and security had been "turned on its head" by the surge in domestic oil and natural gas.
In September, the US Environmental Protection Agency (EPA) raised the renewable volume obligation (RVO) for biomass-based diesel for 2013 to 1.28 billion gallons (4.8 bn litres). In 2012, the applicable volume was 1 billion gallons. API separately said yesterday that it had filed a lawsuit in the US Court of Appeals for the District of Columbia against that decision. It has also lodged a petition for administrative reconsideration of the 2013 biodiesel mandate with EPA. "EPA's overzealous 2013 biodiesel mandate is unworkable, could raise the costs of making diesel fuel, and should be reduced," Greco said.
There was a quick reaction from the biofuel industry.
"Special interests will stop at nothing to discredit the success of renewable fuels created right here at home to ensure their lock on the fuels market goes unchecked. They continue to protect the status quo, ensuring our addiction to foreign oil and preventing consumers a choice at the pump," said Tom Buis, chief executive of Growth Energy, which represents ethanol producers and supporters.
"API wants to repeal a highly successful program that has reduced gasoline imports and stimulated investment in renewable energy resources. API doesn’t like the RFS because it has taken ten percent of their barrel and reduced consumer costs," said Bob Dinneen, president and CEO of the Renewable Fuels Association.
"Today's news was no news: The oil industry is trotting out yet another tired argument, continuing to oppose production of clean, domestic, renewable fuel," Fuels America said on its blog. "A dependence on volatile oil markets and a lack of fuel diversity hurts consumers every day – both at the pump and in the grocery aisles," it added.
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