Should the EPA’s Renewable Fuel Standard be Eliminated? (H.R. 1314)

What is H.R. 1314?

(Updated April 3, 2019)

This bill would repeal the Environmental Protection Agency’s (EPA) renewable fuel standard program, which requires transportation fuel to contain a minimum volume of renewable fuel. The renewable fuel standard, also known as the ethanol mandate, is updated each year by the EPA with minimum amounts of renewable fuels like corn-based ethanol or biodiesel to be blended into the U.S. fuel supply.

Argument in favor

The EPA’s renewable fuel standard is an example of the federal government picking winners and losers in the economy to the detriment of consumers, who pay higher prices as a result.

Argument opposed

The EPA’s renewable fuel standard is a necessary program that ensures gasoline is made in part with renewable fuel. Repealing it would hurt the ethanol industry.

Impact

Consumers of gasoline, livestock and food producers, and consumers of products related to corn or ethanol; gasoline manufacturers; and the EPA.

Cost of H.R. 1314

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Bob Goodlatte (R-VA) introduced this bill to eliminate the EPA’s renewable fuel standard, also known as the ethanol mandate, which requires fuel to contain a certain volume of renewable fuel:

“It’s time the ethanol mandate became a thing of the past. While well-intentioned from the start, after a decade of this policy it couldn’t be more obvious that the RFS is a flop. The RFS Elimination Act would completely repeal this mandate and force ethanol to compete in the free market. The impacts of the ethanol mandate are real. They can be felt at the pump, by livestock and food producers, and by the hardworking families facing higher prices for goods. Even environmental groups have serious concerns about this policy! Folks in the Sixth District and across the country need relief from this failed mandate.”

The CEO of the Renewable Fuels Association expressed the industry group’s opposition to the bill, saying:

“[This bill] is a step backward in energy policy, cutting the legs out from under a burgeoning cellulosic biofuels industry, denying consumers choice at the pump, and returning us to a petroleum only energy economy that brings nothing but price volatility and environmental disaster.”

This legislation has the support of 65 Republican cosponsors in the House.

Media:

• Sponsoring Rep. Bob Goodlatte (R-VA) Press Release
  
• The Hill
  
• Iowa Farm Bureau (Opposed)