The American Petroleum Institute (API) and the American Fuel & Petrochemical Manufacturers (AFPM) on Tuesday called on the EPA to roll back rises in federal ethanol mandates. In a joint letter to the agency, the groups said the 2014 ethanol mandate should be capped at 9.7% of projected gasoline demand. API Senior Fuels Policy Advisor Patrick Kelly cited figures by NERA Economic Consulting that show higher ethanol mandates could drive up the cost of gasoline by 30% and the cost of diesel by 300% by next year. The groups also reiterated their desire to see lower cellulosic biofuel mandates in the future, recommending that requirements be set based on production volumes for the three most recent months. The EPA last week agreed to reconsider its cellulosic renewable volume obligation under the 2013 Renewable Fuel Standard after a successful petition by AFPM.
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