Summary: Top Ten Reasons to Eliminate Renewable Fuel Standards By Scott Alford Renewable Fuel Standards (RFS) are the ultimate example of why government is best left on the sidelines of the free market. In an effort to promote clean energy, the Environmental Protection Agency (EPA) enacted these RFS standards, requiring a certain level of ethanol to be blended into the nation’s fuel supply. The result has been myriad unintended consequences across the economy, from agriculture to the auto industry. Despite the lackluster results, the EPA has decided to slowly intensify the standards. In early 2013, the EPA decided to increase fuel standard from E-10 (an effective blend of ten percent) to E-15 (15 percent), slowly choking an already overburdened energy market. The situation is quickly coming to a head and the repercussions will soon be highly visible at the car dealership, gas pump, and grocery store if nothing is done to repeal these standards. Here are the Top 10 of many reasons to eliminate RFS once and for all: 1. The Standards are Based on Faulty Economic Projections According to The Congressional Research Service, the EPA, when determining the RFS, adopted the Department of Energy’s (DOE) 2007 oil consumption projections. These numbers were based on the assumption of increasing oil consumption; however the data failed to factor in recessions or variation in oil use. When new efficiency standards and the recent recession drove consumption down, the result is higher than anticipated mandated levels of ethanol in the fuel supply, jeopardizing automobile engines and fuel infrastructure. Further, EPA policy is forcing refining companies to meet unrealistic standards for unproven fuels. For example, in year 2011, the EPA issued a $6.8 million penalty on refiners for failing to meet the 6.6 million gallon cellulosic biofuel mandate despite overwhelming testimony explaining that production of that fuel at the mandated level wasn’t plausible. 2. Renewable Fuel Standards (RFS) Damage Engines Scientific studies demonstrate blends of ethanol create risk for automobile engine because of the corrosive properties of alcohol. Therefore, the current E-15 standards are potentially debilitating to automobile motorcycle, and boat engines. The EPA even warns the owners of older or specialized vehicles to avoid the new E-15 fuels because of the high risk of serious injury or death. Brent Bailey, head of a bio research group, has performed 20 studies on the effects of new ethanol blends. He describes the results on older cars as looking "a little bit like Russian roulette." In other words, most cars will be fine but there is a significant danger to consumers if someone places the new fuel in order cars. 3. Violates Warranties All of the major manufactures of vehicles have suggested consumers avoid fuels with over 10 percent because it might damage their car and void manufacturer warranties. Some car companies have placed labels on new cars warning that they are not responsible for damages caused by E-15 fuel. This also prompted AAA to issue a warning that EPA policy establishes a "strong likelihood of consumer confusion and the potential for voided warranties.” 4. Burdensome to Gas Stations The new RFS requirement will require gas stations, 95% which are individually owned, to revamp and renovate their pump infrastructures. They will be required to have pumps known as “blender pumps” which dispense both E-10 and E-15. Often, gas stations make pennies per gallon sold and new infrastructure will harm gas station owners forcing them to raise prices or risk bankruptcy. 5. 4 Gallon Mandate Because of the dangers thatE-15 Fuel poses to certain engines, the EPA will begin requiring at least four gallons of fuel to be purchased by all customers at stations that sell E-15 and use blender pumps. The rule is designed to prevent people from buying small quantities of E-10 which could be contaminated
