CBO Report Ignores National Security, Job Creation and Environmental Benefits of RFS

WASHINGTON, DC — Following the release of a recent CBO report entitled, “Renewable Fuel Standard: Issues for 2014 and Beyond,” a highly flawed and unrealistic evaluation of the importance of renewable fuels and their numerous benefits, Tom Buis CEO of Growth Energy released the following statement:

“This report looks at unrealistic scenarios and completely ignores the very goals of the Renewable Fuel Standard (RFS), which are to decrease our nation’s dangerous dependence on foreign oil, create jobs and spur economic growth and investment, and improve our environment, all while offering consumers a choice and savings at the pump. The CBO report simply shrugs off these critical policy goals contained in the RFS by noting that, ‘CBO did not account for that effect in this analysis.’

“Furthermore, ethanol is trading at a dollar less than gasoline on the Chicago Board of Trade, and the CBO fails to acknowledge a 40 year history of volatile gas prices and simply ignores the effects that global turmoil has on fuel prices. Put simply, increased domestic fuel production and a decreased dependence on foreign oil would help provide stability and reduce the massive price spikes consumers already are experiencing at the pump. Additionally, this report points to a 9 percent increase in fuel prices due to ethanol, when as previously noted, ethanol is currently selling one dollar under wholesale gasoline. Clearly, this report is agenda driven and ignores the facts. Wild and statically unrealistic conclusions such as these show just how flawed the majority of this report is, and why it should not be taken with any level of seriousness.

“It seems to me that the CBO got only one thing right in this assessment, and that is with regards to the production of ethanol from corn and how it has virtually no impact on the price of food. Yet, again it is flawed as it fails to highlight that the true driver of food costs is the price of oil.

“Bottom line, this is a one-sided, skewed report with no value placed on the meaningful policy objectives the RFS provides – a reduced dependence on foreign oil, job creation, an improved environment, as well as providing consumers a choice and savings when they go to fill up at the pump.”