For months, lobbyists for refiners such as Valero Corp. and Exxon Mobil Corp. have warned that a U.S. law requiring increased use of ethanol would result in a mandate to add more of the fuel than they could safely blend into gasoline.
The U.S. Environmental Protection Agency is considering scaling back legal requirements on the use of ethanol next year amid complaints from refiners that statutory mandates would exceed their ability to blend it into fuels without putting engines at risk.
Corn ethanol producers say a pledge by U.S. regulators to lower the level of renewable fuel use required next year may deflate a well-funded oil industry effort aimed at persuading Congress to repeal the mandate.
The Environmental Protection Agency, which is preparing to set mandates for 2013 ethanol use, shouldn’t consider opposition to gasoline blends with more than 10 percent of ethanol when establishing the targets, the Renewable Fuels Association said.
A surge in the value of Renewable Identification Numbers for ethanol compliance isn’t one of the reasons for higher gasoline retail prices, the Renewable Fuels Association said, citing a study by Informa Economics Inc.