Dave Juday points out that the Congressional Budget Office, created during the Nixon Administration to be a nonpartisan evaluator, is doing its job by reporting that with no changes to the renewable fuel standard, the price of diesel fuel will jump by 30 to 51 cents per gallon, with E10 gasoline prices rising 13 to 26 cents per gallon. The EPA has already admitted it needs to lower the biofuels requirement for 2014, but it is nearly August and no final action has been taken. This, Juday notes, frustrates policymakers, analysts, and most of all gasoline and diesel marketers. comending that the government make changes to the EPA's renewable fuel standard to reflect real-world
EPA’s primary role is to confirm what was already laid out by statute in terms of annual volumes of biofuels. That so called “renewable fuels schedule” established in 2005 and update in 2007 requires an ever increasing amount of biofuel to be blended into the nation’s fuel supply until the total hits 36 billion gallons in 2022. Those volumes, however, are completely unrealistic – a fact even EPA recognizes.
If ever there were a case study in the absurdity of industrial policy, the federal mandates for cellulosic ethanol should be exhibit number one.