It’s Time to Repeal the RFS, Not Expand it

WASHINGTON D.C. – The American Energy Alliance and eleven other free market organizations sent a joint letter to Congress today opposing H.R. 1959, the Domestic Alternative Fuels Act of 2013. This bill would expand the Renewable Fuel Standard (RFS) by allowing ethanol derived from natural gas to count toward the mandatory blending targets established by law. AEA President Thomas Pyle released the following statement opposing the RFS:

“The federal biofuel mandate is a misguided policy that distorts energy markets at the expense of the consumer. Expanding the RFS to include natural gas is just another example of the federal government trying to solve a problem it created with another mandate. Instead of expanding this already broken policy, we should move towards a common sense solution to eliminate the mandate altogether. Senator John Barrasso (R-Wyo.) and Senator Mark Pryor (D-Ark.) recently introduced a bill to repeal the RFS and it is our hope that others in Congress will follow suit. The American Energy Alliance is always willing to work with those who oppose mandates that distort markets and harm consumers.”

The joint letter states:

“…Natural gas has no need of special privileges to flourish in the motor fuel market, as two articles in the June 20, 2013 Wall Street Journal clearly show. Worldwide, gas demand in road transport increased tenfold from 2000 to 2010. The International Energy Agency expects gas in road and maritime transport to “do more to reduce the medium-term growth in oil demand than both biofuels and electric cars combined.” This spring Cummins released two new long-haul truck engines that run on gas rather than diesel. The company developed the engines “without a penny of government support.

“We applaud the shale revolution and support the freedom of gas producers to export their product. However, the appropriate cure for a market-rigging scheme like the RFS is repeal, not giving other industries a share of the spoils…”

The other signatories of the letter are:
60 Plus
American Commitment
Americans for Prosperity
Club for Growth
Commonwealth Foundation
Competitive Enterprise Institute
Freedom Action
Frontiers of Freedom
Let Freedom Ring
National Taxpayers Union
To read the full text of the letter, click here (PDF).
To read a recent study by the Institute for Energy Research on ethanol from natural gas, click here (PDF).



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