US trade group rejects call for repeal of ethanol mandate

27 November 2012 21:15  [Source: ICIS news]

HOUSTON (ICIS)--A US ethanol trade group on Tuesday dismissed calls by a rival oil group, which is asking lawmakers to repeal a programme that requires the use of ethanol and other renewable fuels in the country.

The American Petroleum Institute (API) on Tuesday called on Congress to repeal the renewable fuels standard (RFS), which mandates increasing US consumption of ethanol, biodiesel and other biofuels.

The oil group said it believes the RFS is "unworkable and should be repealed".

US ethanol group the Renewable Fuels Association (RFA) refuted those claims, saying there was "no surprise that API does not like the RFS".

"…API doesn’t like the RFS because it has taken 10% of their barrel and reduced consumer costs," said RFA president Bob Dinneen in a statement.

The US is required to use 15.2bn gal (57.5bn litres) of renewable fuels in 2012 under the RFS, which mandates the use of a total of 36bn gal/year by 2022.

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By: William Lemos
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