Ethanol mandate threatens jobs, could lead to price spikes at pumps, oil refiners say

“A renewed war over the federal ethanol mandate has cast a cloud over the biofuels industry as it gathers this week for its annual convention, with critics charging that the sector and its champions in Washington are slowly crushing oil refiners, which say they are struggling to comply with the law.

The debate, which has raged since Congress passed the Renewable Fuel Standard in 2007 requiring the blending of ethanol with gasoline, reached new heights over the past two weeks after a Philadelphia-based oil refiner claimed the program led to its bankruptcy. Philadelphia Energy Solutions, the largest oil refinery on the East Coast, pinned its financial woes on the ethanol mandate and said that over the past two years it had spent exorbitant amounts of money buying “renewable identification numbers,” or RINs, which act as a verification mechanism to ensure that gallons of gas are blended with the amount of ethanol required by federal law.”

Read more at The Washington Times.

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