API: Moving point of obligation does not fix the broken RFS
OREANDA-NEWS. September 14, 2016. Today in a press call with reporters API Downstream Group Director Frank Macchiarola reminded policymakers that the Renewable Fuel Standard mandate needs to be repealed or significantly reformed, and any efforts to tinker with the RFS at the margins will not work and will continue to push consumers to use high ethanol blends that they don’t want and could harm their car engines.
“We need fundamental change to the RFS, and moving the point of obligation adds complexity to an already broken program and undermines efforts at real reform.
“Nearly 90 percent of vehicles on the road today were not designed for higher ethanol blends, such as E15. And many automakers say that using E15 could void car warranties. Higher ethanol blends threaten engines and fuel systems – potentially forcing drivers to pay for costly repairs, according to extensive testing done by the auto and oil and natural gas industries. Moving the point of obligation does nothing to address this fuel incompatibility problem.”
API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 650 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 30 million Americans.