Flores and Welch reintroduce bill to limit ethanol quotas under RFS
US Reps. Bill Flores (R-Tex.) and Peter Welch (D-Vt.) reintroduced legislation on May 7 which would limit ethanol quotas under the Renewable Fuel Standard to 9.7% of the total gasoline volumes projected to be sold in the coming year. H.R. 2540 recognizes negative impacts higher ethanol levels could have on consumers if the blend wall – the point at which ethanol represents 10% of total gasoline sold – is breached, an American Petroleum Institute official said on May 8.
“Most vehicles on the road today are not designed to use fuel blends that contain more than 10% ethanol,” API Vice-Pres. of Downstream and Industry Operations Frank J. Macchiarola explained. “The [Trump] administration’s willingness to raise ethanol volumes puts politics ahead of sound policy and consumer protection. API strongly supports the Flores-Welch RFS reform bill, and we continue to call for lawmakers to act.”
The US Environmental Protection Agency formally proposed allowing year-round sales of gasoline with 15% ethanol on Mar. 12, a move which corn ethanol suppliers cheered and oil refiners condemned. It also proposed modifying parts of its Renewable Identification Number (RIN) program which it said would make the biofuel credits more transparent and deter price manipulation (OGJ Online, Mar. 12, 2019).
“We support this bipartisan bill. It recognizes the blend wall and would reduce the cost to comply with this expensive program,” American Fuel & Petrochemical Manufacturers Pres. Chet Thompson said on May 9. “The RFS is bad policy and we welcome all ideas for its reform.”
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Nick Snow
NICK SNOW covered oil and gas in Washington for more than 30 years. He worked in several capacities for The Oil Daily and was founding editor of Petroleum Finance Week before joining OGJ as its Washington correspondent in September 2005 and becoming its full-time Washington editor in October 2007. He retired from OGJ in January 2020.