API, EWG, ActionAid Call For Repeal Of Corn Ethanol Mandates

API, the Environmental Working Group (EWG), and anti-hunger group ActionAid USA called for repeal of corn ethanol mandates under the Renewable Fuel Standard (RFS) during a joint press event Wednesday.

“A chorus of concerned groups -- from consumer groups to environmental groups to anti-hunger groups and industry groups – are calling for repeal or reform of the nation’s ethanol mandates under the Renewable Fuel Standard,” said Bob Greco, API downstream group director. “API remains seriously concerned that increasing ethanol mandates under the RFS stands to harm consumers and our economy.”

“The Renewable Fuel Standard has not only failed consumers and the environment, it has also failed the advanced biofuel industry it was supposed to help,” said Scott Faber, vice president of government affairs at EWG.

“Over the next decade, [biofuel] mandates will drive a 43 percent increase in global biofuel demand,” said Kelly Stone, biofuels analyst at ActionAid USA. “The United States and the Renewable Fuel Standard will be responsible for half of that demand growth. This level of growth will have serious implications for hunger and land rights around the world, compounding the problems we are already seeing from biofuel production.

High ethanol fuel blends could significantly damage millions of cars on the road, according to testing by the oil and auto industries, and automakers have said they will not honor warranties when consumers use these higher blends. The Congressional Budget Office determined that current ethanol mandates could raise the cost of fuel for consumers and damage our economy.

“The law started off with the best of intentions, but the program is now unworkable,” Greco said. “This year we could hit what is called the ethanol blend wall, where the RFS would force more than 10 percent ethanol into each gallon of gas. This is concerning because most cars on the road today cannot tolerate these higher ethanol blends.”

About API

API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 625 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 25 million Americans.