Everyone at the pump is groaning as they fill their gas tanks, but a revised Renewable Fuels Standard (RFS) might turn the tables and make oil companies start grumbling. Now that the House Energy and Commerce Committee is investigating the Renewable Fuels Standard (RFS), Americans might see lower prices at the pump, and oil companies are furious.
Because of the current RFS law, all fuel sold in the U.S. is required to contain a certain amount of renewable fuels, usually ethanol or biodiesel, to supplement the crude oil supply. Matt Erickson, an American Farm Bureau economist, explains that the common practice in the U.S. is to mix 10 percent ethanol with 90 percent gasoline, resulting in E-10 at the pump.
By 2022, the goal is for the U.S. to use 36 billion gallons of renewable fuels. Currently, the nation is only producing about 13 billion gallons per year..
Erickson promotes the RFS, because it reduces gas prices for consumers, limits America’s reliance on foreign oil, creates jobs for Americans in rural settings, helps American farmers and is environmentally friendly. Read the full interview with Matt Erickson here.
Oil companies, however, are against the RFS, because it will curb America’s dependence on oil and sap money away from their businesses. Livestock and poultry groups also oppose the RFS and have urged Congress to repeal the act.
“Cattlemen and women are self-reliant, but in order to maintain that we cannot be asked to compete with federal mandates like the Renewable Fuels Standard for the limited supply of feed grains,” said NCBA Policy Vice Chair Craig Uden, an Elwood, Neb., cattle feeder. “When EPA is unable to provide even a temporary waiver of the RFS during the worst drought in 50 years, it is apparent the RFS is broken and we appreciate the efforts of Sens. Barrasso, Pryor and Toomey to fix this flawed program.”