The American Fuel and Petrochemical Manufacturers (AFPM) called the EPA’s Renewable Fuel Standard (RFS) a “disaster” after a new study shows the law will cost the states of New England $20 billion from 2005-2024. In a post on its Petro Primer blog Tuesday, AFPM cited a report from Center for Regulatory Solutions that revealed the ethanol mandate will reduce labor income in New England by $7.3 billion and cut labor demand by 141,000 job years during that period.
Refiners have long advocated for reforming or repealing the RFS due to its potential negative impact on the economy and consumers. Opponents of the RFS claim using corn ethanol in gasoline harms engines and drives up food prices.
AFPM also cited a recent study showing the RFS cost Ohio motorists $4 billion between 2005 and 2014.
Meanwhile, the Renewable Fuels Association took to its own blog earlier this week to refute an oft-used argument by the oil industry and members of Congress that U.S. gasoline demand is falling. The group noted figures from the Energy Information Administration (EIA) showing gasoline consumption in August was the highest since July 2007, as consumers took advantage of low pump prices driven by the recent oil price plunge.
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