Now Is a Good Time to Scrap the Renewable Fuel Standard

[Geee]

Real Clear Politics

Regardless of the eventual outcome of the Chinese coronavirus pandemic, it has shown the American people, yet again, that the political leaders of both parties have made terrible decisions in the past. The decisions on offshoring production, especially that of antibiotics and drugs, and our weak and porous borders, have made it abundantly clear how vulnerable we are on the manufacturing and immigration fronts.  

Those weaknesses, which are national security issues, must be rectified as soon as possible. But there are other issues, other decisions, that must be corrected as well. Those who have been paying attention realize that many industries are facing a critical time because the coronavirus is suppressing worldwide demand.

But one of the hardest hit sectors in the U.S. is the energy sector as it experiences the double blows of the Chinese coronavirus and the flooding of the oil market by Russia and Saudi Arabia, a move that has driven oil prices down while those nations fight for market share with the United States. So while demand is down, prices are also down.

To add to this problematic situation, small and large U.S. refineries are getting punished under an unrealistic Renewable Fuel Standard mandate. So in the middle of an economic downturn, as our energy sector is under tremendous stress, we are continuing the madness of unnecessary regulations on a key aspect of our economy (one that should also be considered a national security issue). These RFS mandates imposed on this core industry in America impose a heavy cost of RFS compliance credits (RINs) that is then draining cash from American-owned businesses at a time when draining cash can, and actually may, lead to bankruptcy.