There was good discussion of the Renewable Fuels Standard (RFS) during a Hill hearing this week. API supports the appropriate use of ethanol, biodiesel and other biofuels in transportation fuels, but, unfortunately, in some ways the standard is bearing out the law of unintended consequences.

API President and CEO Jack Gerard addressed the House energy and power subcommittee, noting that U.S. refiners have primary responsibility for meeting the RFS requirements, blending nearly 15 billion gallons of ethanol in gasoline. But the RFS’ requirements are producing some bad policy, Gerard said:

“EPA has allowed the RFS law’s volume requirements to drive decisions that are inappropriate and unwise.  The law has become increasingly unrealistic, unworkable, and a threat to consumers.  It ne... more »

In today's episode, I interview API's Downstream and Industry Operations Group Director Bob Greco about the Environmental Protection Agency's (EPA) decision regarding the amount of ethanol permitted in gasoline. Use the audio player below to listen to information about the article and follow along with the show notes. I hope you find the podcast informative.

00:16 Nearly every gallon of gasoline sold in America today contains ethanol. This alcohol fuel is made primarily from corn here in the United States and blended into gasoline in accord with federal guidelines. Gasoline containing no more than 10 percent ethanol has been in the marketplace for several years. But recently the Environmental Protection Agency (EPA) decided to allow fuel containing up to 15 percent ethanol to be s... more »

Battle lines are being drawn over the labels that are supposed to be affixed to gasoline pumps dispensing E15. This fuel blend, which consists of 85 percent gasoline and 15 percent ethanol, has been authorized by the Environmental Protection Agency (EPA) for use in 2007 and newer model vehicles despite the fact that it appears to be capable of harming some engines and dispensing equipment.

Now a fight is brewing over the labels for the pumps. To prevent misfueling, API is proposing a label that provides the critical information to the consumer to make an informed decision:

Growth Energy, the pro-ethanol group that petitioned the EPA to permit the sale of E15, prefers this label:

Now I ask you: Which of these labels is more likely to get your attention and stop you from putting the wrong f... more »

In comments filed with the U.S. Environmental Protection Agency (EPA), API today revealed that a Department of Energy (DOE)-funded study shows the vast majority of existing gasoline pumps will fail if used to dispense E15.

E15 is a fuel blend consisting of 85 percent gasoline and 15 percent ethanol. EPA has approved E15 for use in 2007 and newer model vehicles.

The study, which was conducted by Underwriters Laboratories (UL) for DOE's National Renewable Energy Laboratory (NREL), shows that 40 percent of new dispensing equipment designed for use with E10 (today's gasoline) failed tests, and 70 percent of previously used E10 equipment failed tests.

There also is a strong similarity between the materials used in aboveground equipment and underground storage tank systems, leading API to conclu... more »

Here is a prime example of what can happen when Congress and the administration tamper with the free market system to impose their will on the American public. Simply put, their meddling can create major headaches for consumers.

At issue is the government's attempt to force-feed ethanol into the nation's gasoline pool. As reported by Reuters, "cellulosic production has not grown as rapidly as Congress had hoped." As a result, the Environmental Protection Agency (EPA) is proposing to lower the cellulosic mandate by 93 to 98 percent below the 250 million gallons set by Congress for 2011.

At the same time, however, the congressional mandate is forcing the need for higher amounts of ethanol in gasoline. To respond to the mandate, EPA is promoting a new fuel - gasoline blended with 15 percent e... more »