ET Auto: U.S. Biofuel Groups Slam CBO Report on Renewable Fuel Standard

Posted on June 29th, 2014

From ET Auto (June 28, 2014):

U.S. biofuel groups on Friday pushed back against a government report that found federal renewable fuel use targets would raise gasoline and diesel prices, slamming the study as “unrealistic.”

The report by the non-partisan Congressional Budget Office said an unaltered Renewable Fuel Standard (RFS) would cause gasoline prices to climb by up to 26 cents a gallon, or 9 percent, in 2017.

Biofuel producers are fighting to get the Environmental Protection Agency to roll back proposed steep cuts to this year’s biofuel mandate, arguing that the revisions would damage investment in their industry.

The CBO assumed that the EPA, which administers the biofuel program, would not lower the advanced biofuel targets that were supposed to be met using cellulosic ethanol, and instead would require biodiesel and imported sugarcane ethanol to make up the shortfall.

“This is simply not realistic modeling for what will happen under the RFS in the coming years,” Ben Evans, a spokesman for the National Biodiesel Board, said. “The EPA has tremendous flexibility under the RFS based on fuel availability and has shown that it is willing and ready to exercise that flexibility as necessary.”

The RFS requires increasing amounts of various types of biofuels to be blended into U.S. gasoline and diesel supplies each year through 2022.

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