Lowering the RFS: The Most Significant Tool in the Toolbox to Lower Gas Prices

However, increased pain at the pump resulting from the RFS program’s tradeable compliance credits — Renewable Identification Numbers or “RINs” — is nothing new.

Independent experts have been highlighting how slightly lowering the RFS requirements can lower consumer gas prices significantly for the past year. Here are just a few examples:

May 2022: Wells Fargo Equity Research notes the RFS costs consumers 20–30 cents per gallon over the last year.

May 2022: Renowned oil analyst Paul Sankey of Sankey Research (citing a Reuters article about the White House considering lowering the RFS to address rising gas prices) tweeted:

April 2022: ScotiaBank opines on possible administration decisions about RFS Small Refinery Exemptions (SREs):

February 2022: EPRINC’s Lou Pugliaresi testifies before the U.S. Senate Environment and Public Works Committee:

December 2021: EPA itself, in its proposed rule for 2020–2022, reasserts its long expressed belief that RINs increase gas prices:

December 2021: Prominent energy consulting firm Rapidan Group indicates EPA’s RFS proposal could send RIN prices north of $2 per credit, while stating:

November 2021: Bloomberg story on gas prices cites refining consultancy Turner, Mason & Company and Bank of America as indicating that reducing the RFS will lower fuel prices:

June 2021: Wells Fargo Equity Research calls for eliminating RINs and states:

Setting the Renewable Volume Obligation (RVO) under the RFS to a standard based on the maximum amount of ethanol the fuel supply can consume, which is about 13.5 billion gallons based on projected gasoline demand for the year, rather than an unachievable gallon requirement that simply drives up the price of RINs and consumer fuel prices, could shave as much as 30 cents per gallon off the cost of making gasoline and diesel.

With gasoline prices hitting yet another record, it’s time for the Biden administration to use the most significant tool in its toolbox to address consumer pain at the pump. President Biden must lower the RFS requirement, before it’s too late.

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Fueling American Jobs Coalition

Fueling American Jobs Coalition

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