Ethanol organizations responded Wednesday to what they say is a “flawed study” released by the American Petroleum Institute (API) that concludes “statutory biofuel mandates under the Renewable Fuel Standard (RFS) are infeasible to achieve in 2015 and beyond and could cause severe harm to consumers and the U.S. economy.”
Renewable Fuels Association (RFA) President and CEO Bob Dinneen says the talking points in the study commissioned by NERA Economic Consulting (NERA) are nothing new from the oil industry.
“It’s déjà vu all over again,” said Dinneen. “This study is virtually identical to a study that NERA published for API in 2012. The conclusions of both analyses are completely divorced from reality… API was wrong in 2012, and it’s wrong in 2015.”
“This newest API study contains many of the same fatal flaws that plagued the 2012 study. This study claims that gas prices will rise by $90 a gallon and diesel will rise by $100 per gallon. It foolishly assumes EPA will not ever utilize its cellulosic waiver authority to partially reduce the advanced and total RFS volume requirements. And it also assumes obligated parties would purchase a RIN credit at any price rather than making modest infrastructure investments to expand renewable fuel distribution.”
Growth Energy CEO Tom Buis says that API is “repackaging stale, false talking points” about the RFS. “(D)espite what API claims, over 84 percent of cars on the road today are approved to use E15,” said Buis. “Regardless of what API claims, the bottom line is that ethanol blends help clean the environment, are higher performing, less expensive and directly benefit the consumer by providing a choice and savings.”
Fuels America stressed that API doesn’t speak for fuel retailers who tell a story about the benefits of higher blend fuels. “When consumers have a choice, there is no blend wall,” said Dave Sovereign, owner and operator of the Cresco Fast Stop.
“We need to be supporting homegrown renewables. We need to be blending more ethanol into our fuel supply, not less,” said Cheryl Near, owner of Jump Start gas station in Wichita, Kansas. “We need blender pumps, we need to buy direct from the ethanol plants, and then we can pass our savings on to the consumers.”