Washington, DC (PRWEB) August 13, 2013
The American Fuel & Petrochemical Manufacturers (AFPM) and the American Petroleum Institute (API) filed a joint-petition to the Environmental Protection Agency (EPA) for a partial waiver of the 2014 applicable volumes of the Renewable Fuel Standard (RFS).
AFPM is calling on EPA to exercise its authority to waive the 3.35 billion gallons from the 18.15 billion gallon 2014 renewable fuel mandate. This action is necessary to avoid the severe economic harm that will result from exceeding the 10 percent ethanol blendwall. Beyond 10 percent, the corrosive nature of ethanol renders the blended fuel incompatible with today’s engines, vehicles and the multi-billion dollar infrastructure in place throughout the nation. Waiving the 2014 volumes is the only available solution to avert the potentially disastrous implications of the blendwall.
“The negative impacts of the RFS will be extreme and will undoubtedly hurt consumers. If EPA does not act, the inability to blend the statutory-mandated amount of ethanol could lead to domestic fuel supply shortages and ultimately cause severe economic harm to consumers and the economy,” said AFPM President Charles T. Drevna.
Analysis conducted by NERA Economic Consulting has shown that the RFS and its unrealistic mandates will cause economic harm to the nation. As domestic fuel supplies decrease due to the unrealistic requirements of the RFS, large increases in transportation fuel costs will ripple through the economy and impose significant costs on society. Unless the RFS volumes required by statute are waived, NERA predicts a $270 billion decline in GDP in 2014, which will grow to $770 billion in 2015.
“EPA has the opportunity to curtail the harmful effects of the policy next year by waiving the 2014 volumes before more economic damage is done,” said Drevna. “I expect it will take American families into consideration when it makes its decision.
“EPA missed a golden opportunity to address the ethanol blendwall in 2013; however, we’re encouraged the Agency recognized there is a problem in its rule setting this year’s biofuel requirement. This petition will provide a roadmap for the Agency to follow as it promulgates its 2014 waiver,” continued Drevna.