The oil-industry-backed Energy Policy Research Foundation made several incorrect assumptions in its response to the Renewable Fuels Association's critique of an EPRINC report suggesting a long-term suspension of the Renewable Fuel Standard, writes Geoff Cooper, RFA's vice president of research and analysis. Contrary to EPRINC's assertion that ethanol demand is inelastic, ethanol production and use have declined sharply since the drought started pushing corn prices higher in June. Moreover, EPRINC's suggestion to maximize gasoline yields from crude oil as a response to reduced ethanol supply in a "post-RFS" world would just push up prices of heating oil and diesel, Cooper states.

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