Higher ethanol mandates would hurt consumers, farmers: API

Higher ethanol mandates would hurt consumers, farmers: API

Washington (Platts)--23May2005


The American Petroleum Institute released two studies Monday finding that
legislation requiring more than 5-bil gal/d of renewable fuels in gasoline
could "hurt consumers and the nation's agricultural sector while yielding only
small--and costly--reductions in US petroleum use and imports." API said it
supports a renewable fuels standard of 5-bil gal by 2012, which matches the
language in the House-passed energy bill. 

The Senate Environment Committee, however, recently approved legislation
establishing 6-bil gal renewable fuels standard (RFS), and some senators have
said they would like to boost that level even higher, to 8-bil gal by 2012,
during the Senate energy debate. API said it opposes the higher figure because
it would "force ethanol into markets outside the Midwest, where the majority
of ethanol is produced, complicating logistics and increasing costs to pay for
transporting the fuel."

This story was originally published in Platts Petrochemical Alert
http://www.petrochemcialalert.platts.com

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