Commentary: Are presidential hopefuls ignoring real issues of renewable fuels?
Monday September 12, 2016
The debate over policy governing renewable fuel requirements has intensified recently. Powerful interest groups have ignited a divisive battle to influence policy-makers. When it comes to this year’s election, renewable fuels continue to be well-supported, but policy mandating the use of those renewable fuels in gasoline remains to be seen.
The Renewable Fuel Standard (RFS) mandates biofuel volume requirements in fuel. Aside from the clear need to reduce our carbon footprint, the original goal of the RFS was to reduce the United States’ dependence on foreign oil by replacing a portion of imported oil with renewable fuels produced domestically. However, many believe, that has become unnecessary, thanks to the shale revolution. 
Jacqueline Campos is a research analyst at Opportune, an international energy consulting firm in Dallas.
According to the EPA, We're balancing two dynamics: Congress' clear intent to increase renewable fuels over time to address climate change and increase energy security, and the real-world circumstances that have slowed progress toward those goals.â€
Taking a deeper look the challenges, it’s clear why this is a hot-button issue for so many.
Compliance
Compliance for the RFS is tracked using Renewable Identification Numbers (RINs). Â They act as a currency for the RFS program, bought and sold on an open market. The dilemma is that RINs cannot be utilized until ethanol is blended into fuel, just before delivery to service stations. Once blended, the fuel cannot be transported by pipeline. So, lacking the infrastructure to generate RIN’s independently, many refiners responsible for complying have no choice but to purchase RINs. And skyrocketing RIN prices have caused RFS compliance to become their highest operating expense.
Environment
Another challenge facing the future of the RFS program is the environmental cost. Newer studies show profound effects on water, land use, and greenhouse gas emissions, suggesting that the push for biofuels as a green alternative may be misguided.
According to the National Academy of Sciences in an analysis of the economic and environmental effects of the RFS...