WASHINGTON - Launching a bipartisan review of the Renewable
Fuels Standard (RFS), the House Energy and Commerce Committee released last
week its first in a series of white papers that examine a number of issues
emerging with the current system and solicit input from interested
stakeholders.
Energy and Commerce Committee Chairman Fred Upton (R-MI),
Ranking Member Henry A. Waxman (D-CA) and other committee members are leading
the effort to review the law and its implementation.
"It has been more than five years since the RFS was last
revised, and we now have a wealth of actual implementation experience with it,"
the white paper explains. "In some respects, the RFS has unfolded as expected,
but in others it has not. Several implementation challenges have emerged that
received little if any consideration prior to passage of the Energy
Independence and Security Act of 2007. Furthermore, the overall energy
landscape has changed since 2007. It is time to undertake an assessment of the
RFS."
The white paper addresses the so-called "blend wall," the
point at which adding the required volume of ethanol to gasoline supplies would
result in ethanol blends that exceed 10%, which is the maximum ethanol content
approved for sale for use in all vehicles. As gasoline demand has declined in
recent years, and ethanol targets have continued to rise, the blend wall is
approaching much faster than anticipated. The required volumes of ethanol as
set by the RFS must now be added to a smaller-than-expected pool of gasoline, and
many experts predict the 10% blend wall may be reached as soon as this year.
While blends containing up to 10% ethanol (E-10) have long been used, refiners
may need to start producing E15 to stay in compliance.
The approaching blend wall raises a number of issues for
producers, refiners, auto manufacturers, and fuel retailers. The white paper
examines these issues and poses a number of questions for discussion. The
committee is requesting interested stakeholders to send responses to these questions
by April 5, 2013.
View a copy of the white paper, a list of
questions for stakeholder comment and instructions to respond.