The U.S. Environmental Protection Agency (EPA) says it has not found evidence to support severe economic harm that would warrant granting a waiver of the Renewable Fuels Standard (RFS). EPA says the decision is based on economic analyses and modeling done in conjunction with the U.S. Department of Agriculture (USDA) and U.S. Department of Energy (DOE).
Economic analyses of impacts in the energy sector, conducted with DOE, showed that waiving the mandate would not impact household energy costs.
EPA found that the evidence and information failed to support a determination that implementation of the RFS mandate during the 2012-2013 time period would severely harm the economy of a state, a region, or the U.S. The standard was established by Congress in the Energy Policy Act of 2005 (EPAct).
EPAct required EPA to implement a renewable fuels standard to ensure that transportation fuel sold in the U.S. contains a minimum volume of renewable fuel. A waiver of the mandate requires EPA, working with USDA and DOE, to make a finding of “severe economic harm” from the RFS mandate itself.
This is the second time that EPA has considered an RFS waiver request. In both cases, analysis concluded that that the mandate did not impose severe harm. In 2008, the state of Texas was denied a waiver.
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