From AAIA Capital Report
 
Representative Bob Goodlatte (R-Va.) and a bipartisan group of legislators have introduced two bills that aim to alter the Renewable Fuels Standard (RFS). Originally passed by Congress prior to the recession, the RFS requires gasoline sold in the U.S. to contain a minimum amount of renewable fuel, most of which happens to be the corn-based ethanol. However, given that an increasing amount of corn continues to be diverted to ethanol creation rather than toward other uses like livestock feed, opponents of the RFS highlight the increased costs placed on businesses and consumers.
 
According to Rep. Goodlatte’s statement, his first bill, the RFS Elimination Act, “eliminates the RFS and makes ethanol compete in a free market.” His second bill, the RFS Reform Act, would simply cap the amount of ethanol added to gasoline at 10 percent. EPA has issued rules that would permit up to 15 percent ethanol on 2001 and later vehicles; a decision that has been sharply criticized by car companies and small engine manufacturers, who charge that these high levels of ethanol will cause severe engine damage.
 
Those representing the ethanol industry continue to defend the RFS by emphasizing the reduced cost to consumers at the pump while attacking the oil industry for trying to eliminate the viable, competitive alternative fuel that is ethanol.
 
Goodlatte’s press release can be found here.