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Energy Tomorrow Blog

renewable-fuel-standard  consumers  ethanol  blend-wall  e1534  e8534 

Mark Green

Mark Green
Posted August 1, 2017

With EPA receiving public input this week on its proposed ethanol-use volumes for 2018, it’s important to see that America’s energy renaissance in natural gas and oil production is the biggest reason for the progress the U.S. has made toward those RFS objectives. 

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renewable-fuel-standard  rfs34  consumers  ethanol  e1534 

Sabrina Fang

Sabrina Fang
Posted June 13, 2017

This week members of the U.S. Senate will consider legislation that would serve to expand the presence of E15 fuel in the marketplace. Unfortunately, the bill is a distraction from fundamental problems with the Renewable Fuel Standard (RFS), which is forcing more and more ethanol into the nation’s fuel supply. Research has shown higher ethanol blends, such as E15, could damage vehicle engines and fuel pump systems, socking consumers with the repair bills. The RFS needs to be repealed or significantly reformed, to protect U.S. consumers. As EPA prepares to announce ethanol mandates for 2018 under the RFS, API Downstream Group Director Frank Macchiarola briefed reporters on the flawed program.

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renewable-fuel-standard  rfs34  consumers  e1534  ethanol  blend-wall 

Sabrina Fang

Sabrina Fang
Posted April 7, 2017

A new national API poll shows that American voters have serious concerns about the Renewable Fuel Standard and its mandates for ever-increasing levels of ethanol in the nation’s fuel supply. Key findings from the survey of 1,000 registered voters include 74 percent agreeing that federal regulations could contribute to increased costs for gasoline to consumers and 68 percent who're concerned about government regulations that would increase the amount of ethanol in gasoline.

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consumers  renewable-fuel-standard  ethanol  e1534  blend-wall 

Mark Green

Mark Green
Posted October 18, 2016

The Renewable Fuel Standard, created a decade ago to strengthen U.S. energy security and benefit American consumers, is doing neither. The RFS is broken and should be repealed or significantly reformed – with the interests of consumers the top priority. That’s the message API Downstream Group Director Frank Macchiarola delivered during a conversation with a group of energy reporters this week.

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renewable-fuel-standard  consumers  ethanol  e1534 

Sabrina Fang

Sabrina Fang
Posted August 9, 2016

Thanks to an energy renaissance here in the United States, Americans driving to their summer destinations have been enjoying low prices at the pump. To keep this progress going, we need to end harmful policies that could raise the cost of energy and negatively impact millions of vehicles on the road.

As the EPA works to finalize its 2017 Renewable Fuel Standard volumes, API is launching a new multi-faceted advocacy campaign that will include TV and online advertising. Our campaign will focus on how higher ethanol mandates can hurt consumers, potentially raise costs and possibly void automobile warranties.

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renewable-fuel-standard  rfs34  ethanol  epa34  e1534  e8534  consumers 

Mark Green

Mark Green
Posted June 10, 2016

We often hear proponents of the federal Renewable Fuel Standard (RFS) argue that mandating increasing use of ethanol in the nation’s fuel supply is about consumer choice. This view is reflected in some of the news coverage of this week’s RFS public hearing in Kansas City.

Yet, when you look at the marketplace and the fuels consumers actually want, the RFS represents restricting choice, not expanding it.

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renewable-fuel-standard  rfs34  gasoline-prices  epa34  economic-impacts  e1534 

Mark Green

Mark Green
Posted May 27, 2016

When you head out for your Memorial Day drive, consider the current price of gasoline – the U.S. average retail price of $2.30 a gallon, which the U.S. Energy Information Administration (EIA) says is 47 cents lower than at the same time last year and the lowest average price just before a Memorial Day weekend since 2009. 

Now, let’s all thank the U.S. energy revolution, which is playing a big role in consumer benefits, like those seen at the pump. EIA notes that lower gasoline prices reflect lower crude oil prices. And the global crude market wouldn’t be where it is without higher U.S. crude production. 

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renewable-fuel-standard  rfs34  consumers  epa34  ethanol  e1534  blend-wall 

Mark Green

Mark Green
Posted May 18, 2016

One unsettling aspect of the federal Renewable Fuel Standard (RFS) is that for some time it has appeared – from public statements anyway – that EPA considers the program an ongoing experiment, testing the ability of government policy to change or modify the behavior of free markets and the fueling choices of individual consumers, with consumers as the guinea pigs.

The results were logged in long ago: Flaws in the RFS and EPA’s management of the program mark it for repeal or significant reform. RFS mandates for increasing ethanol use in the nation’s fuel supply threaten breaching the ethanol “blend wall,” risking impacts to the broader economy and consumers’ wallets.

Just as unfortunate is EPA’s apparent lack of concern for U.S. consumers –reflected in the agency’s proposals for 2017 volume levels, which will test the blend wall, the point where required use of ethanol in the fuel supply exceeds the safe level of 10 percent.


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renewable-fuel-standard  rfs34  blend-wall  ethanol  epa34  e1534  e8534 

Mark Green

Mark Green
Posted March 25, 2016

To understand why the Renewable Fuel Standard (RFS) must be repealed or significantly reformed, start at the “blend wall.”

The ethanol blend wall is where – because of the RFS’ mandates – more ethanol must be blended into the nation’s fuel supply than can be absorbed as E10 gasoline – gasoline containing up to 10 percent ethanol, which is standard across the country. Put another way, when ethanol makes up more than 10 percent of the total U.S. fuel mix, you’ve breached the blend wall.

At that point refiners have few options. They can produce E15 and E85, fuels containing higher volumes of ethanol, or they can comply with the RFS by reducing the amount of fuel supplied to the domestic market. Neither is a good choice for American consumers.

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renewable-fuel-standard  rfs34  e1534  ethanol  consumers 

Jack Gerard

Jack Gerard
Posted March 3, 2016

The RFS was in the spotlight again last week, as the Senate Environment and Public Works Committee conducted an oversight hearing on the policy. It’s a law that certainly invites scrutiny due to the significant and wide-ranging damage it causes. Besides raising the consumer price index for food by 25 percent since 2005 because ethanol production has diverted nearly 40 percent of the U.S. corn crop from food to fuel, the policy is also bad for drivers and the economy.

In testimony before the committee, Lucian Pugliaresi, president of the Energy Policy Research Foundation, Inc. (EPRINC), shared EPRINC’s conclusion that continuing to administer the RFS as written “would increase gasoline prices from approximately 30 cents to 50 cents a gallon” and cautioned Congress to address “the risk to economic recovery” this poses. 

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