The Environmental Protection Agency wants to increase the amount of renewable fuel in the nation’s gasoline supply by about 700 million gallons in 2017.
The agency proposed adding 18.8 billion gallons of renewable fuel to gasoline in 2017 in the newest Renewable Fuel Standard announced Wednesday afternoon. That would cause renewable fuel to make up 10.44 percent of the nation’s gasoline supply in 2017, the EPA said.
The proposed standard could push past the blend wall, which oil companies characterize as the point at which a car’s engine can be harmed by having too much ethanol in gasoline. About two-thirds of the vehicles on the road are covered for the damage in their warranties, according to biofuel groups.
The EPA has announced previously that it anticipates lower gasoline prices will drive up demand, which would dilute the percentage of ethanol in gasoline. Congress requires the EPA to regulate the volume of renewable fuels in the nation’s gasoline supply rather than requiring it to be a certain percentage.
Still, the EPA hailed the announcement as a return to regular business after years of delays in new standards.
“The Renewable Fuel Standards program is a success story that has driven biofuel production and use in the U.S. to levels higher than any other nation,” said Janet McCabe, acting assistant administrator for EPA’s Office of Air and Radiation.
“This administration is committed to keeping the RFS program on track, spurring continued growth in biofuel production and use, and achieving the climate and energy independence benefits that Congress envisioned from this program.”
The proposal would increase the amount of ethanol in gasoline by 300 million gallons and increase the amount of advanced renewable fuel by almost 400 million gallons, according to the EPA.
The first public hearing on the proposal is set for June 9 in Kansas City. Public input and comment is open until July 11.
The oil industry pushed back against the proposal immediately Wednesday afternoon.
Frank Macchiarola, director of the downstream group at the American Petroleum Institute, said the EPA was not protecting consumers.
“Consumers’ interest should come ahead of ethanol interests,” Macchiarola said. “EPA is pushing consumers to use high ethanol blends they don’t want and that are not compatible with most cars on the road today. The administration is potentially putting the safety of American consumers, their vehicles and our economy at risk.”
Biofuel groups were also not happy with the proposal.
Brooke Coleman, executive director of the Advanced Biofuels Business Council, said not enough was being done to correct “regulatory missteps” in how the EPA comes up with blending requirements. He said the EPA needs to pressure the oil industry more to come up with low carbon biofuels.
“The administration has pledged to do everything in its power to drive the commercialization and use of advanced, low carbon biofuels. The 2017 proposal does not do that. We cannot let the oil industry slow the implementation of this program. It’s that simple,” he said.
“If the administration wants our industry to be aggressive when it comes to financing and commercializing low carbon fuels in the United States, as they have asked us to do, they need to hold up their end of the bargain and make some critical adjustments to the RFS final rule.”
