The Renewable Fuels Standard in the Energy Independence and Security Act of 2007 sets mandates for biofuels production in the United States and was intended to reduce our dependence on foreign oil and reduce our greenhouse gas emissions. While both these goals have been achieved since the passage of that law, neither was due to the Renewable Fuels Standard (RFS). Rather, the U.S. oil industry has almost doubled the nation’s production of oil, making oil imports fall appreciably; and a recession beginning in 2008 with a sluggish economy thereafter, combined with a natural gas production boom enlarging its market share versus coal for electrical generation resulted in a lowering of greenhouse gas emissions. Despite not meeting its goals, the RFS is costing American motorists additional fuel costs over and above what they would have paid for gasoline due mainly to ethanol’s lower fuel efficiency. And, according to the Congressional Budget Office, American motorists can expect further cost increases if the original RFS mandates are forced to be met.
