Oil Industry Pleads for No Changes to Ethanol Blend

American Petroleum Institute sends letter asking EPA not to revise fuel standards.

May 02, 2014

WASHINGTON – The American Petroleum Institute (API) has sent a letter to the U.S. Environmental Protection Agency (EPA) to request that the Renewable Fuel Standard not increase for 2014, the Des Moines Register reports. The oil industry is hoping that the agency will resist pressure to up the levels this year.

In November 2013, the agency floated the idea of slashing the mandate from 18.15 billion gallons for renewable fuels to 15.21 billion gallons this year. Traditional biofuels would drop from 14.4 million to 13 million gallons. However, recent data seems to indicate that more Americans are on the road, which could spell more demand for ethanol in the fuel supply.

The EPA will release its final rule in June, but some analysts are predicting an increase from the November estimate. “These mandates set the minimum amount of ethanol that must be used each year, not the maximum,” said Bob Greco, API downstream director, during a conference call with reporters. “Greater volumes of biofuels could be used if the market demand is there. It’s better to err on the side of caution with the final mandate rather than force more ethanol into gasoline.”

The institute also will launch a new radio, online and TV advertising campaign to push the agency and White House to stick to the November proposal.

Advertisement
Advertisement
Advertisement