Reports Demonstrate Benefits of National Renewable Fuel Standard
According to a new report by economist John Urbanchuk,
An Economic Analysis of Legislation for a Renewable Fuels Requirement for
Highway Motor Fuels, implementing a nationwide renewable fuels standard
would significantly increase energy security, stimulate the U.S.
economy and boost farm income. Several
bills have been introduced in Congress that would establish varying levels
of a Renewable Fuel Standard.
The report considered the economic and energy security impacts that would be gained from increasing the renewable content of motor vehicle fuels from current levels to four percent, which would result in the use of 5.8 billion gallons of ethanol in 2011 and 7.6 billion gallons of ethanol in 2016. According to the report, this level of a Renewable Fuel Standard would:
- Reduce crude oil imports by 2.9 billion barrels (an average of 302 million barrels annually), lowering our dependence on imported oil to 65 percent compared to 70 percent projected by the U.S. Department of Energy in 2016.
- Reduce the U.S. trade deficit by $63.4
billion. v Create 300,000 new American jobs.
- Increase U.S. household income by $71 billion.
- Add $10.5 billion in new rural economic investments in
renewable fuel production facilities.
- Increase net farm income by $6.6 billion annually.
- Reduce direct government payments to
farmers by $7.8 billion.
For a copy
of the complete report, visit: www.ethanolRFA.org/pubs.html
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