EPA’s Renewable Fuel Standard: The federal regulation that’s pushing home heating bills even higher this winter

In fact, for the average American household, the RFS is on track to add an extra $100 to heating oil bills this winter.

Given 5.5 million American households relied on heating oil as their main source of space heating fuel last year, more than 80 percent of which were located in the Northeast region, it’s estimated the RFS will add approximately hundreds of millions of dollars to U.S. home heating bills nationwide.

How is the federal biofuel mandate driving up home heating costs? It goes back to the unpredictable, unsustainable, and unproductive costs of “RINs.”

To demonstrate compliance with the RFS, domestic refiners and fuel importers must purchase compliance credits called “Renewable Identification Numbers,” known as RINs. RINs were initially created to track each gallon of biofuel from production to blending. Unfortunately, this accounting system has devolved into an artificial, unregulated market over the years.

Due to this hidden tax, the average American household with a 500-gallon heating oil tank will pay an extra $100 in already high heating costs this winter.

In the U.S. Northeast, where consumers used about 2.9 billion gallons of heating oil in 2019, that means the Renewable Fuel Standard is on track to add $580 million to consumer home heating bills this year.

The broken RFS is causing higher home heating bills at the same time working Americans are unable to pay any more into an already inflated economy. For the sake of working families — especially the millions of families in the Northeast region preparing for winter — President Biden must fix the RFS once and for all.

With family budgets already stretched thin by rising consumer prices, and an administration with few other options to shield Americans from rampant inflation and the growing global energy crisis, President Biden has a clear opportunity to provide millions of American families with some relief on their home heating bills this winter by fixing the RFS.

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Fueling American Jobs Coalition

Fueling American Jobs Coalition

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A coalition of union workers, local gas station owners, small retailers, and independent American refiners fighting to fix EPA’s flawed Renewable Fuel Standard.