The RFS is Bad Policy: National and Multi-Industry Consensus

The RFS is a broken policy, and its continued
implementation could result in dire consequences for
the broader economy, as well as negative impacts on
consumers. Action is needed to protect the property
and interests of everyday Americans, as well as the
economy. We believe the RFS should be repealed or
significantly modified, and most Americans and many
other industries agree.

In testimony before the Senate Environment and Public
Works Committee, Lucian Pugliaresi, President of the
Energy Policy Research Foundation, Inc. (EPRINC),
shared EPRINC’s conclusion that continuing to
administer the RFS as written “would increase gasoline
prices from approximately 30 cents to 50 cents a
gallon” and cautioned Congress to address “the risk to
economic recovery” this poses.

According to the USDA, nearly forty percent of the 2017
U.S. corn crop will be diverted to ethanol production,
and just over 1/3 of the oil produced from soybeans,
the leading source of vegetable oil in the U.S., will be
diverted to biodiesel production in 2017/18. In fact,
since the RFS expanded renewable fuel volumes in
2007, over 1/3 of corn production and nearly 1/4 of
the oil produced from soybeans have been diverted to
biofuels.1 As the EPA points out, “because many biofuel
feedstocks require land, water, and other resources,
research suggests that biofuel production may give rise
to several undesirable effects.”

“Lower gasoline prices are yielding annual savings for
the U.S. economy of $129 billion, or an estimated $1000
per year per household. These savings to consumers
are essential for expanding economic growth, particularly
in light of the enormous losses we are seeing from
rapid cuts in capital investment in domestic oil and gas
development. … Great care should be taken to ensure
that these savings are not lost through a regulatory
program that increases gasoline prices.”   Lucian
Pugliaresi, EPRINC President