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World Biofuels
Symposium
November 13-15, 2005
Beijing, China
2nd Annual Canadian Renewable Fuels Summit
December 13-15, 2005
Toronto, Ontario, Canada
Hosted by:
Candadian Renewable Fuels
Association
National Biodiesel
Conference & Expo 2006
February 5-8, 2006
San Diego, California
Organizer:
National Biodiesel Board
11th Annual
National Ethanol Conference: "Policy & Marketing"
February 20-22, 2006
Las Vegas, Nevada, USA
Sponsored by:
Renewable Fuels Association
22nd
Annual International Fuel Ethanol Workshop & Expo
June 20-23, 2006
Milwaukee, Wisconsin, USA
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Posted on
April 18, 2002EIA Analysis Affirms That Renewable Fuels Standard Has Virtually No Impact on Gas Prices Latest Report Contradicts Misstatements Made During Last Week’s Senate Debate
WASHINGTON, DC – The U.S. Energy Information Administration (EIA), the independent research arm of the Department of Energy, this week released an analysis of the price impacts of the renewable fuels standard (RFS) compromise pending in the U.S. Senate. During last week’s Senate debate, a handful of Senators incorrectly claimed that EIA had predicted adding a minimum renewables standard for gasoline would increase prices by 4 to 9 cent per gallon. The EIA released the new analysis to clarify that requiring renewables would add at most 0.5 cents per gallon to the price of gasoline nationwide.
“The EIA has reiterated that establishing a renewables standard for gasoline has a minimal impact on prices,” said Bob Dinneen, RFA president. “The average price impact from adding renewables for all gasoline is less than half a penny. And the EIA points out that the half a penny estimate is probably too high because their analysis doesn’t take into account the credit trading provisions of the bill which will reduce any price impact.”
According to the EIA, banning MTBE will increase gasoline price by 3 to 3.5 cents per gallon nationwide. In reformulated gasoline (RFG) areas the price increase is predicted to be 8 cents per gallon. However, establishing a RFS would only add at most 0.5 cents per gallon nationwide or 1 cent per gallon in RFG areas. The EIA notes its analysis does not include the impact of the RFS credit trading system, which will lower price impacts, and notes the 0.5 to 1 cent price increase represents an upper limit of the costs associated with the RFS.
“Quite frankly, I think many people were fooled by a misleading Hart-IRI analysis,” said Dinneen. “Hart, which does a great deal of work on behalf of the MTBE industry, incorrectly attributed the 4 to 9 cent price impact to adding renewables instead of banning MTBE as EIA actually reported. This is a price increase 14 states, including California and New York, have already accepted as a necessary cost of protecting their drinking water. But what’s important to us is that the RFS has no noticeable gas pump price impact while enhancing energy security and creating American jobs.”
The full EIA report can be found on their web site at: www.eia.doe.gov/oiaf/servicerpt/mtbe/pdf/sroiaf(2002)07.pdf
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