Oil and natural gas industry react to US court ruling on RFS

The American Petroleum Institute (API) has reacted to the US Court of Appeals District of Columbia Circuit’s decision to prevent the Environmental Protection Agency from lowering the Renewable Fuel Standard’s volume obligations.

Although hailed as a significant victory by the biofuels industry, the Court’s decision is far from universally popular. According to the API, it reinforces that there is a need for legislative reform in the RFS.

“EPA’s waiver was necessary to protect consumers from an outdated mandate that attempts to force the use of ethanol beyond the limits that the vehicle fleet and refuelling infrastructure were designed to handle,” said API Downstream Group Director Frank Macchiarola.

“Today’s decision reaffirms the need for Congress to revisit and significantly reform the broken RFS program. The outdated goals of the ethanol mandate have led to implementation challenges for EPA and the refining industry.” (Macchiarola was speaking on 28 July, the day the Court verdict was announced).

API claims that since 2007, when the RFS mandate was revised, the US has risen from a net importer to a net exporter of oil, becoming the world’s largest producer and refiner of oil and natural gas. This, the US trade association of the oil and gas industry argues, should trigger a rethink of energy policies such as the RFS.

“EPA’s waiver was necessary to protect consumers from an outdated mandate that attempts to force the use of ethanol beyond the limits that the vehicle fleet and refuelling infrastructure were designed to handle,” said API Downstream Group Director Frank Macchiarola.

“Today’s decision reaffirms the need for Congress to revisit and significantly reform the broken RFS program. The outdated goals of the ethanol mandate have led to implementation challenges for EPA and the refining industry.”

“API had supported EPA basing its waiver on the broader negative economic consequences of the mandate, and as EPA considers implementing a revised and retroactive standard for 2014-2016, we will encourage EPA to reconsider this option," said Macchiarola.

 

Biofuel perspective

Shortly after the verdict had been announced, Poet CEO Jeff Broin said: “Today’s decision is a victory for US drivers and everyone who supports clean, American-made fuel.

“Congress clearly laid out its vision for increasing our nation’s use of American-made biofuels, and the biofuels industry has worked tirelessly to make that vision a reality. We must use every available gallon of clean, domestic biofuels in lieu of importing more oil. It’s environmentally responsible; it’s economically responsible; it’s common sense; and it’s the law.”

“We hope this decision will help us move past the unjustified resistance to year-round use of E15 by those protecting oil markets and pave the way to the expansion of higher biofuel blends across the United States.

“Biofuels today replace toxic chemicals linked to cancer, developmental disorders and other health issues. Biofuels lower greenhouse gas emissions by at least 43%. Today’s decision will help to increase those benefits while lowering costs for consumers at the pump.”