EIA analysis affirms that RFS has virtually no impact on gas prices

By | April 01, 2002
The U.S. Energy Information Administration (EIA), the independent research arm of the Department of Energy (DOE), this month released an analysis of the price impacts of the renewable fuels standard (RFS) compromise pending in the U.S. Senate. During Senate debate early this month, a handful of Senators incorrectly claimed that EIA had predicted adding a minimum renewables standard for gasoline would increase prices by 4 to 9 cents 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.

Establishing an 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.