American Petroleum Institute, National Council of Chain Restaurants call for renewable fuel standard reform

The American Petroleum Institute (API) and National Council of Chain Restaurants (NCCR) recently condemned the Environmental Protection Agency’s 2017 Renewable Fuel Standard (RFS) requirements, saying the standard is bad for fuel costs, car engines and food prices.

“The renewable fuels standard is broken,” API Downstream Group Director Frank Macchiarola said. “The well-being of American consumers hangs in the balance as EPA continues to push more and more ethanol into the fuel mix. Study after study has shown that the RFS could raise fuel costs for consumers and damage car engines.”

In light of these issues, the API said it is supporting the Flores-Welch FRS reform bill, which is a bipartisan bill boasting 117 co-sponsors in the House. Beyond its impact on the petroleum industry, the RFS has more unexpected ramifications, including a potential to lead to increased food prices.

“The RFS also impacts corn prices, which then impact the price of food and other goods and services,” Macchiarola said. “The market has shown that the RFS is outdated, and more Republicans and Democrats understand that the policy is broken and that there is a real opportunity for reform.”