Posted on: September 20, 2013 in E15, Renewable Identification Numbers, Renewable Fuel Standard

Bob Dinneen submitted the following letter to the editor of the Fort Dodge Messenger News.

What happened to balanced reporting at the Fort Dodge Messenger News? On September 15^th, you ran an article, or should I say advertorial, entitled “Valero: Fix the RFS”. There is not one fact check or even one dissenting voice in the entire piece.  With over 40 ethanol plants operating in Iowa, The Messenger missed an excellent opportunity to cover a robust conversation on the importance of maintaining the Renewable Fuel Standard (RFS).

Valero’s RFS story has several holes in it. First of all, the letter they sent to the Environmental Protection Agency (EPA) did not expressly ask for a waiver from the 2013 RFS requirements. If Valero, the third largest producer of RINs, a renewable fuel credit, is struggling to meet their requirement, the problem is clearly their own lack of planning. Many oil companies with better business acumen are finding the required RINs and reporting very comfortable profit margins. Perhaps Valero should spend less time spinning the media and more time studying the business practices of their successful peers. The RFS is the single most effective energy policy this country has known. It is successfully lowering our dependence on foreign oil, stimulating investment and job creation in the United States, and improving our environment. The RFS is not broken, but Valero’s logic is.

As for E15, approximately 75% of the cars on the road are 2001 or newer and thus able to use E15. Auto manufacturers such as Ford, GM, and Volkswagen have been adding language to their owner’s manuals which includes E15. There are also presently 15 million flex-fuel vehicles in use today which run on E15 and blends as high as E85. Clearly, American drivers know what they want. They want a low-cost, renewable alternative fuel at the pump. Gas stations offering E15 over the past year have experienced increasing consumer demand and increasing profits.

Valero also has the data wrong on the costs of a retailer adding an E15 pump. According to the Petroleum Equipment Institute, the cost to retrofit a gas station for E15 could be as little as $1,200 — a cost quickly recouped by increased sales revenue.

The RFS is not choosing winners or losers as Valero suggests. It is unfortunate that Valero views itself as a loser. However, by denying consumers access to more biofuels and money-saving, renewable alternatives at the pump, Valero is choosing profits over consumer benefits and choice.

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