API welcomes House proposal to end nonsensical federal ethanol mandate
“The nation’s ever increasing ethanol mandate is a crisis in waiting, and a chorus of concerned groups has joined API in calling on congress to repeal it,” Gerard said. “Unless we stop this madness now, the mandate could put consumers in harm’s way, hurt the economy, and disrupt the nation’s fuel supply.”
Gerard said that the industry is hitting the ethanol blend wall, meaning the amount of ethanol required to be blended under the RFS is unsafe for most vehicles on the road today. Millions of cars could be severely damaged by fuel blends that contain more than 10 percent ethanol, according to studies by the Coordinating Research Council (here and here), and automakers have said higher ethanol blends would void car warranties.
By 2015, the mandate would cause severe fuel rationing that would lead to a $770 billion decrease in U.S. GDP and a $580 billion decrease in take-home pay for American workers, according to a study by NERA economic consulting.
“Ethanol and other renewable fuels have an important role to play in our transportation fuel mix and will continue to be used after Congress repeals the mandate,” Gerard said. “But we cannot allow a mandate for ethanol that exceeds what is safe and that could put upward pressure on fuel prices.”
API is a national trade association that represents all segments of America’s technology-driven oil and natural gas industry. Its more than 500 members – including large integrated companies, exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms – provide most of the nation’s energy. The industry also supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $85 million a day in revenue to our government, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.
