CEO DATELINE - Oil groups blast EPA decision to uphold ethanol mandate
CEO DATELINE - Oil groups blast EPA decision to uphold ethanol mandate
- December 1, 2017 |
-
Walt Williams
Consider joining CEO Update. Membership gives full access to the latest intelligence on association management, career advancement, compensation trends and networking events, as well as hundreds of listings for senior-level association jobs.
The oil industry suffered its first major loss at the hands of the Trump-era Environmental Protection Agency when regulators announced Thursday they would not scale back the amount of ethanol that must be blended with motor fuel.
The federal Renewable Fuel Standard requires a set amount of biofuels to be blended with gasoline and other petroleum-based fuels. The oil industry opposes the mandate and sought changes that would ultimately reduce the blending requirement.
Oil industry lobbyists believed they had an ally in EPA Administrator Scott Pruitt, who has criticized the mandate in the past and has been a strong opponent of environmental regulations. However, farmers are a major supporter of the RFS, with corn-based ethanol the chief biofuel used in blending. Sen. Chuck Grassley (R-Iowa) led the effort to leave the requirement untouched.
"Unfortunately, it appears that EPA did exactly what Sen. Grassley demanded, bowing the knee to King Corn," American Fuel & Petrochemical Manufacturers CEO Chet Thompson said. "We think this action is bad for U.S. manufacturing and American consumers and encourages Congress to finally fix the RFS."
The American Petroleum Institute also wasn't happy with the decision. Downstream Group Director Frank Macchiarola said the biofuel mandate "is broken and needs comprehensive reform."
"Since the RFS was instituted more than a decade ago the U.S. has greatly reduced its dependence on crude oil imports," he said. "So this program is trying to solve a problem that no longer exists while creating real problems for consumers."
Biofuel groups were pleased with the decision, although many wished the EPA had gone farther by boosting the blending requirement.
"The RFS remains America's single most successful energy policy and continually works to save consumers money, protect the environment, drive rural growth, and secure U.S. energy independence," said Emily Skor, CEO of Growth Energy, which represents ethanol producers. "To keep this momentum strong, the EPA must take bold steps toward growth, as outlined by President Trump."
MORE CEO DATELINE