Publications: Notes at the Margin

Refiner Avoidance of Renewable Fuels Obligation (August 31, 2026)

 

In 2006, President George W Bush strengthened the US renewable fuels program to “wean” the United States from its growing “addiction” to petroleum.[i] The oil industry, then and now, opposes the program, officially the Renewable Fuel Standard (RFS), which it considers a subsidy for US farmers. As with all regulations, the parties who see themselves as harmed seek to duck their obligations in every possible way. In the last few months, US refiners have successfully avoided their renewable volume obligation (RVO), imposed under the RFS. In doing so, they are producing less gasoline and diesel, American consumers are paying higher prices, and American farming operations have become more expensive. The oil industry’s avoidance more than offsets the $2 to $3 billion in increased aid the Environmental Protection Agency promised farmers in March.[ii]

 

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