Analysis: Inflation could shape Biden RFS decision

Source: By Agri-Pulse • Posted: Sunday, November 14, 2021

The latest data on inflation has certainly gotten President Biden’s attention. And some energy analysts believe concerns about soaring gas prices could lead his administration to limit the annual biofuel mandates under the Renewable Fuel Standard. An analysis by ClearView Energy Partners estimates the current cost of RFS compliance at 14 cents a gallon, up from 6 cents last year. “Although RFS leniency comes with Farm Belt political backlash, we assess Biden as having depended less than his immediate predecessors on corn and soy-growing regions for his 2020 victory,” the analysis says. “In any case, we would suggest that the Biden White House may face a more imminent challenge: staving off perceptions of being staffed like a third Obama Administration but trapped in a second Carter term.”