Shell and BP have broken with the oil and gas industry’s top trade groups that are demanding the repeal of the Renewable Fuel Standard, Fuel Fix reports.
Both companies have biofuels ventures: Shell has partnered with Virent to develop plant-based fuels at a facility in Houson while BP has a joint project with DuPont, called Butamax Advanced Biofuels, according to Fuel Fix.
Shell’s downstream policy and advocacy manager John Reese says the company “generally supports the RFS,” but does think it should be revised. And while BP agrees the federal mandate needs some changes, the company supports the RFS program’s goals to develop biofuels technologies, Fuel Fix says.
The renewable fuel standard requires refiners to blend increasing amounts of renewable fuel into motor vehicle fuel sold in the US — up 36 billion gallons in 2022.
Most oil companies insist they can no longer mix in enough ethanol to meet the renewable fuel standard’s targets. The American Petroleum Institute and the American Fuel and Petrochemical Manufacturers have called for a complete repeal of the program, Fuel Fix says. And in a blog post earlier this week ExxonMobil’s vice president of public and government affairs Ken Cohen wrote the RFS is “broken beyond repair.”
Last month, fast food chains White Castle and Wendy’s lobbied to repeal the Renewable Fuel Standard on the grounds that fuel produced from soy, corn and other agricultural crops drives up food prices.
The American Petroleum Institute and American Fuel and Petrochemical Manufacturers have also called upon the EPA to withdraw its proposed Tier 3 rule, which would require lower sulfur content in gasoline.
API says Tier 3 is a “reckless” and “unnecessary” regulation that won’t do much to improve air quality and will impose about $10 billion in new capital costs on refiners, increasing gasoline manufacturing costs by between six and nine cents per gallon.