"Pumping gas at gas pump" by Engin Akyurt
Americans for Tax Reform urges members of the House to reject the National Consumer and Fuel Retailer Choice Act (H.R. 1346). This legislation would lead to higher costs for consumers, increase government spending, and expand government regulation of the private sector.
The bill would expand the renewable fuel standard (RFS) to further impose government mandates on American refineries requiring minimum amounts of ethanol in gasoline while removing the waiver requirement for year-round sales of E15, a gasoline blend that contains up to 15 percent ethanol.
If Congress wants to permit the year-round sale of E15 fuel it should first repeal the Renewable Fuel Standard mandate altogether and allow E15 to compete in a free market. Unfortunately, the National Consumer and Fuel Retailer Choice Act fails to address the RFS program’s failures and instead expands the government mandate.
Increases Government Spending
The Congressional Budget Office estimates that enacting H.R. 1346 would increase direct spending by $2.7 billion over the 2026-2036 period, further adding to deficits.
Expanding the RFS is Bad for Consumers and Worsens Fuel Economy for Drivers
As the CBO itself notes:
“Because ethanol has a lower energy content than gasoline, higher ethanol blending would reduce fuel economy and increase gasoline consumption, thus increasing revenues from the federal excise tax on gasoline.”
Would Likely Lead to Greater EPA Regulation In the Future
The legislation requires the Environmental Protection Agency (EPA) to issue new regulations that modify requirements for labeling and storage of E15 fuel. This would open the door for a future Democrat administration to further weaponize the EPA against the American oil and gas industry through increased regulations and mandates. As the CBO again notes:
“If EPA imposed stricter regulations, that provision could impose a private-sector mandate on the entities that are subject to the regulations.”
Americans for Tax Reform urges all members of the House to vote “NO” on the National Consumer and Fuel Retailer Choice Act.
