WASHINGTON -- National Farmers Union (NFU) Senior Vice President of Programs Chandler Goule issued the following statement in response to a study by the Congressional Budget Office (CBO) on the impact of the Renewable Fuel Standard (RFS):
“CBO’s claim that repealing the RFS would reduce gasoline prices is simply false. The RFS has reduced consumer demand for oil, and the study fails to take that into account. It is unfortunate that CBO, which is supposed to be objective, released such a flawed study that does not take into account the reality of fuel markets.”
“Study after study show that the RFS is saving consumers money. E85prices.com recently released data showing that consumers filling up with E85 can save an average of $0.61 less per gallon.”
“Thankfully, the CBO study does acknowledge that the RFS is not driving up food prices. Additional studies from the U.S. Department of Agriculture and the World Bank clearly show that ethanol does not increase prices in the grocery store.”
“The RFS is a successful policy tool that decreases our nation’s reliance on foreign oil, creates economic opportunities in rural America, and effectively decreases the greenhouse gas footprint of the transportation sector. CBO should have taken all of these benefits to consumers into consideration when performing the study.”
National Farmers Union has been working since 1902 to protect and enhance the economic well-being and quality of life for family farmers, ranchers and rural communities through advocating grassroots-driven policy positions adopted by its membership.