Renewable Fuel Standard Studies

Sound science doesn’t appear to have the clout it once did. At least that’s how it seems when it comes to government regulating. Take for instance the EPA’s proposal to reduce RFS blending requirements from 14.4 billion gallons to 13.01 billion gallons, basing their decision on a belief that RIN credits raise retail gas prices. Recent and not so recent studies have shown that RFS policies actually decrease gas prices and should not be a reason to reevaluate or change RFS levels. In one instance authors of a quite recent study, which shows that as RIN prices increase the retail prices for both E85 and E10 decrease, state that, “Our results should reassure those in Congress and the Administration who are worried that following the RFS commitment to expanding the use of renewable fuels will result in sharply higher fuel prices for consumers. There may be sound policy reasons that could justify Congress revisiting the RFS. However, concern about higher pump prices for consumers is not one of them.”