On June 26, 2014, the Congressional Budget Office (CBO) issued a 38-page report on the federal Renewable Fuel Standard (RFS), "The Renewable Fuel Standard: Issues for 2014 and Beyond." The report examines potential compliance with the RFS through 2017 under three scenarios and evaluates the effects on food and fuel prices under each one. A copy of CBO's summary of the report is available online. A copy of the full report is available online.
The report evaluated the impact on food and fuel prices under the following three RFS scenarios through 2017: compliance with the RFS requirements for advanced, biodiesel, and corn ethanol (not cellulosic); compliance with the RFS volume requirements consistent with EPA's proposed 2014 RFS requirements; and repeal of the RFS requirements. While CBO found that food prices would be similar whether the RFS is continued or repealed, it found varying potential effects on fuel prices. For instance, CBO concluded that continuing RFS statutory requirements through 2017 would lead to increased price of all types of transportation fuels, except E85.
Advocates on both sides of the RFS debate are already using the report. Some opponents have already argued that the report's findings further support reforming or repealing the RFS. Some RFS supporters have dismissed the report's conclusions as contrary to those of other respected economists who have studied the RFS and come to different conclusions. The report comes as RFS stakeholders are eagerly awaiting EPA's release of its final 2014 RFS rule.