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Oil industry, oil-state lawmakers want RFS gone

Petroleum refiners made it clear they would like to see the Renewable Fuel Standard go away.  American Fuel and Petrochemical Manufacturers Association CEO Chet Thompson testified Friday before the House Energy and Commerce Subcommittee on a proposal to change America’s octane standards.  “Sunsetting the RFS and transitioning to a 95 RON performance standard would end mandates, reduce overall compliance burdens, and provide achievable regulatory targets.”

Growth Energy’s Emily Skor testified in favor of higher octane but insisted the RFS needs to be a part of that.  “Ninety-five RON is a 91 premium fuel that’s currently sold on the marketplace, often with a 10% ethanol blend, so if we move to a national standard of 91, there would be little to no incentive to further use biofuels in our national transportation mix.

The RFS is not popular with oil-state Congressmen, including Joe Barton of Texas, who said he would repeal it if he could.  “Nobody can say ethanol is a struggling start-up industry anymore, so you really don’t need all of the protection, the mandates, the quotas that we have today.”

The five people testifying Friday agreed Ethanol is currently the lowest-cost octane booster available, but Skor emphasized that without market access through the RFS, there is no guarantee ethanol will be used.

The panel testifying included Thompson, Skor, Timothy Columbus representing gas marketers and convenience stores, Dan Nicholson from General Motors, and Paul Jeske with the Illinois Corn Growers.