RFA identifies how policy has helped clean the air, boost energy security, lower fuel prices and support jobs and economic activity.

December 19, 2018

2 Min Read
ethanol plant with corn field in the front
Jim Parkin iStock

Eleven years ago, on Dec. 19, 2007, President George W. Bush signed into law the expanded Renewable Fuel Standard (RFS2).

The RFS2, included in the Energy Independence & Security Act of 2007, requires petroleum refiners and importers to annually blend increasing volumes of renewable fuels with gasoline and diesel, culminating with 36 billion gal. in 2022. Since its enactment, the U.S. has experienced cleaner air, greater energy security, revived economic activity in rural areas and more affordable choices at the pump, according to the Renewable Fuels Assn. (RFA).

Among the numerous benefits, according to RFA, since being signed into law, the RFS has:

●       Helped clean the air. The greenhouse gas emissions avoided from using ethanol has increased four-fold, from 12.7 million tons of carbon dioxide equivalent (CO2e) in 2007 to 55 million tons CO2e in 2018. Carbon monoxide and particulate matter emissions are down as well, as is the concentration of ground-level ozone.

●       Boosted energy security. U.S. dependence on imported crude oil and petroleum products fell from 58% in 2007 to just 14% in 2018, thanks in large part to growth in the use of ethanol and other biofuels.

●    Lowered fuel prices. Because ethanol is priced below gasoline and far below competing octane sources, the RFS has led to lower gas prices for consumers. One recent study found that ethanol reduces spending on gasoline by $142 per American household.

●   Supported jobs and economic activity. Since enacted, the number of jobs supported by the ethanol industry has increased by 53% -- from 238,541 jobs in 2007 to 365,491 in 2018. Additionally, the industry generates more than $40 billion in gross domestic product every year.

“The RFS has unquestionably lived up to its promise,” RFA president and chief executive officer Geoff Cooper said. “It has lowered consumer fuel prices, decreased reliance on imported petroleum, reduced emissions of harmful tailpipe pollutants and greenhouse gases, supported hundreds of thousands of jobs in rural America and added value to the crops produced by our nation’s farmers. With proper oversight and implementation, the program will continue to drive innovation, support rural economies and provide cleaner and more affordable fuel choices at the pump,” he added.

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