The American Petroleum Institute (API) today accused the Obama Administration of “playing politics” with the 2014 Renewable Fuel Standard, which the EPA may raise after proposing a lower RFS for the first time last November. Greco suggested the White House’s actions are motivated by a potentially tight open-seat Senate race in Iowa between Democratic Representative Bruce Braley and Republican Joni Ernst.
API Downstream Group Director Bob Greco expressed the group’s concern that the EPA wants to raise the RFS to stimulate sales of E85, which he said can only be used by 6% of the nation’s vehicle fleet. Via Platts, an industry analyst said the EPA could raise the corn ethanol mandate to 13.6 billion gallons, up from the 13.01 billion gallons it proposed in November. The analyst said anything above 13.6 billion gallons would require a higher E85 consumption estimate or a methodological change. API said E85 demand represents only 0.15% of overall gasoline demand.
Greco said the API is also concerned that the EPA is adjusting its RFS target based on the latest gasoline demand figures for 2014. It “borders on the impossible” for refiners to plan for regulatory requirements that change later in the year, he said.
