WASHINGTON — IER Distinguished Senior Fellow Charles Drevna will testify today at 10:00 AM ET before the House Science Subcommittees on Oversight and Environment at a hearing on the Renewable Fuel Standard (RFS). In his testimony, Drevna explains the failures of the RFS and why it is time to repeal the mandate. Below is an excerpt from his written testimony:
The Renewable Fuel Standard was based on incorrect assumptions about oil production and consumption, as well as the ability of Congress and the administration to mandate and create incentives for innovation and vast technological and economic leaps in biofuel production. The RFS was intended to create greater energy and economic security, but as Milton Friedman famously posited, “One of the great mistakes is to judge policies and programs by their intentions rather than their results.”
The results of the RFS are a failure for America. We have greater energy security today—not because of vast improvements in cellulosic biofuels as envisioned in 2007—but because of much greater domestic oil production coupled with a leveling off of demand. It is time we look at the actual results of the RFS and act accordingly. As a result, it is time to end the RFS and let American fuel producers focus on delivering the best products to American motorists.