PO Box 1146
Salida, CO USA  81201
(719) 539-0300
Fax: (719) 539-0301


BBI International... Your Biofuels Resource


Event Calendar

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, 200
San Diego, California
National Biodiesel Board

11th Annual National Ethanol Conference: "Policy & Marketing"
February 20-22, 200
Las Vegas, Nevada, USA
Sponsored by:
Renewable Fuels Association

22nd Annual International Fuel Ethanol Workshop & Expo
June 20-23, 200
Milwaukee, Wisconsin, USA

Join our
Email Subscription List

Select your topics of interest for regular and timely updates - control your subscriptions and unsubscribe anytime

Complete Listing of Upcoming Events

Event History

Free Booklet Download:
Fuel Ethanol: A Technological Evolution



Posted on  

April 18, 2002

EIA 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



Other News

Click here to see previously posted News items in our Archive

BBI Store

BBI International
Project Development

Multi Client Study:

More information and contents

BBI Online Store


Biodiesel Industry Directory Online:
View it FREE!


Home | Company Info | International Fuel Ethanol Workshop & Trade Show | Biofuels Recruiting | BBI Media

Biofuels Project Development - Biofuels Conference & Event Planning - BBI Media - Biofuels Recruiting

All logos and trademarks in this site are property of their respective owner.
Remainder of content Copyright © 2005 BBI International.