Some time ago, the politicians in Washington decided that mandating the use of so-called renewable fuels in the nation’s energy portfolio would accelerate their development and production on a commercial scale.
It was a large scale test that has failed, for the most part. The Renewable Fuels Standard is based on the assumption that forcing energy producers to utilize corn-based ethanol, cellulosic ethanol, wind power, solar technology and other so-called alternative energy sources would create a market for them. As a result they would be more plentiful and, therefore, cheaper.
It hasn’t worked out that way. The RFS has resulted in increased costs all across the energy sector. Now, with that same sector focused on what the United States Environmental Protection Agency will announce is its proposed RFS for 2014, it’s time for Congress to consider getting rid of it altogether. Continue reading
Re: Renewable Fuel Standard “Reforms”
Dear Senator & Representative:
It has come to our attention that Congress is considering legislation this fall to reform the Renewable Fuel Standard (RFS). We, collectively and individually, believe the only reform to this failed government mandate should be to repeal the RFS. Repealing this mandate would bring certainty to the fuel markets and eliminate the harmful impacts this government program has had on businesses and consumers.
The RFS is a clumsy and misguided command and control mechanism that requires a certain level of ethanol to be blended into the nation’s transportation fuel supply. Gasoline has been required to contain 10% ethanol. The EPA plans to increase the amount of ethanol blended into gasoline by 50%. This is a horrifically bad idea. Congress has been working towards ending the counter-productive and costly RFS. Debt limit negotiations or other legislative vehicles moving through Congress at this time should not be used to expand regulatory burdens and impose additional costs on Americans. Continue reading