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EPA Administrator Testifies before Senate Environment Committee

 

Earlier this week, EPA Administrator Scott Pruitt testified before the Senate Environment and Public Works Committee. As expected the RFS became the focal point of the hearing as Administrator Pruitt fielded questions from both parties. Senator Joni Ernst (R-IA) asked Pruitt whether the EPA can extend the summer-time RVP waiver to E10 plus blends in order to allow E15 to be sold year-round. Pruitt responded that it’s a legality question and EPA is still considering whether the agency actually has the authority to extend the waiver.

Before the Senate Environment and Public Works (EPW) Committee held a hearing on legislation to extend the RVP waiver to E10 plus blends last summer, PMAA submitted a letter for the record to Chairman Barrasso and Ranking Member Carper highlighting its concerns with the bill. PMAA firmly believes that before Congress proceeds any further on granting a RVP waiver to blends above E10, it must first hold a hearing on the effects of ethanol blends on existing underground storage tank (UST) system infrastructure. The introduction of ethanol blends higher than 10 percent (including E15) present significant economic and legal impediments for many gasoline retailers as well as consumer awareness issues that go beyond the price of the fuel. Extending the RVP waiver to E15 at this point further exacerbates these concerns and could force many retailers to invest considerable time and money on an accelerated schedule to switch to an alternative fuel storage and distribution system to remain competitive. PMAA’s letter to the EPW Committee also highlighted concerns about different names a few retailers have used to sell E15 such as "Unleaded Plus” to make it more marketable than just calling it E15.

Pruitt also fielded a question from Senator Mike Rounds (R-SD) regarding ethanol’s role in meeting Corporate Average Fuel Economy (CAFE) standards for road vehicle fuel efficiency. The Senator asked if the Administration will consider ethanol as a way to boost octane needed for high compression engines being developed by automakers. Pruitt responded that the EPA is agnostic about the fuel source and that EPA is currently reviewing what octane fuels can boost vehicle efficiency. In 2012, the EPA and the National Highway Traffic Safety Administration (NHTSA) adopted rules requiring the nation’s cars and light trucks to average 54.5 miles per gallon by 2025. Auto manufacturers have expressed concern that the standards are too aggressive and have urged the Trump Administration to reconsider the rule. Despite agreeing to the Obama-era CAFE standards in 2011, automakers have asked the Trump Administration and Congress to reconsider the current standards given that consumers continue to buy less fuel-efficient vehicles due to lower motor fuels prices. The Administration is reviewing the Obama Administration’s CAFE standards and is expected to make a determination on whether to reduce CAFE standards this Spring.

Meanwhile, in an interview with Fox Business, Administrator Pruitt partly blamed the RFS for forcing the largest oil refiner on the East Coast, Philadelphia Energy Solutions, to file for bankruptcy last month. PES has blamed RINs costs as a major factor in its bankruptcy filing. Pruitt later said that, “RIN reform is very, very important.”

It’s safe to say that the RFS fight isn’t over for the foreseeable future. Click here to view the video.

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