Fuel Policy

Every American should be able to choose the type of car or truck they want to drive. Restricting consumer choice by eliminating competition and banning entire vehicle power trains is the wrong path to achieving cleaner transportation or supporting U.S. energy security.

When Congress created the Renewable Fuel Standard, the intent was clear. The RFS was supposed to build a market for American-grown biofuels and support domestic energy security. Today, EPA wants to deviate wildly from this course. Instead of maintaining the RFS as a program for liquid transportation biofuels, EPA’s RFS proposal for 2023 to 2025 would begin transforming the RFS into yet another huge government subsidy for electric vehicles.

The California Air Resources Board (CARB) adopted its Advanced Clean Cars II (ACCII) regulation. ACCII requires 35% of light-duty vehicle sales to qualify as “zero emission” by 2026 and 100% by 2035. Essentially, this amounts to a ban on new sales of traditional gasoline and diesel-powered cars and trucks. To implement the policy, California will need a Clean Air Act waiver from the Environmental Protection Agency (EPA). If EPA grants the waiver, millions of Americans—including many outside of California—could lose the option to buy the car or truck THEY want.

AFPM Senior Director of Fuels & Vehicle Policy Patrick Kelly today issued the following statement on EPA's announcement that it will grant requests from eight Midwestern states to remove the 1.0 psi RVP waiver from summertime gasoline effective next year. If implemented, these states will no longer be able to sell the current blend of summertime gasoline and a new grade of gasoline will need to be manufactured and supplied to the region.

Eight midwestern governors have petitioned the EPA seeking to opt their states out of the federal 1-pound Reid Vapor Pressure (RVP) waiver which is a requirement to sell the current summertime blend of E10 gasoline. If these requests are granted, the E10 gasoline currently sold in most of the country during summer months will no longer be offered for sale in these states and annual costs to introduce a new gasoline bend will range from $500-$800 million each year.

AFPM Senior Director of Fuels and Vehicle Policy, Patrick Kelly, testified during the Environmental Protection Agency’s (EPA’s) public hearing on the proposed Renewable Fuel Standard (RFS) “Set” Rule. EPA’s proposal will stifle advanced biofuels, promote first generation biofuels beyond the market’s ability to absorb them and shift overall RFS growth away from liquid biofuels and into the power electricity sector. This is completely contrary to how congress envisioned EPA’s handling of the program.

AFPM's Geoff Moody issued the following statement responding to the EPA's 2023-2025 proposal for RFS blending obligations: “Congress provided EPA the ability to modernize the RFS and set it on a more sustainable course for all stakeholders. Sadly, EPA’s proposal is a missed opportunity..."

Diesel inventories in the United States and around the world are low and there is growing concern about what tight supplies could mean heading into a cold winter. Below, AFPM’s industry analysts explain (1) what’s behind this particular supply chain challenge, (2) how U.S. refiners are adapting operations to meet consumer needs (i.e., running full out and maximizing distillate production) and (3) the role government might play in bringing about resolution.