WASHINGTON, December 12, 2013 – The Corn Ethanol Mandate Elimination Act introduced in the U.S. Senate today demonstrates the growing, bipartisan concerns that ethanol mandates could harm consumers and put our economy at risk, according to API Downstream Group Director Bob Greco:

“Repealing corn ethanol mandates is the first step toward protecting consumers from outdated and costly public policy. EPA’s proposal to lower the 2014 mandates could provide a stopgap, but Congress needs to deliver a long-term solution to provide certainly for consumers. Requirements set back in 2007 could soon push ethanol levels in gasoline above what is safe for most cars on the road today. Ultimately, we need a full repeal of the Renewable Fuel Standard to put consumers in charge of choosing the best fuel for their vehicles. We cannot allow mandates that harm consumers and put our nation’s economy at risk.”

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.

If left unchanged, the RFS mandate could cause severe fuel rationing that would lead to a $770 billion decrease in U.S. GDP that would translate to a $580 billion decrease in take-home pay for American workers by 2015, according to a study by NERA economic consulting.

API is a national trade association that represents all segments of America’s technology-driven oil and natural gas industry. Its more than 550 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 and are backed by a growing grassroots movement of over 15 million Americans. The industry also supports 9.8 million U.S. jobs and 8 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.