A new study by the Energy Research Policy Foundation, Inc. (EPRINC) further debunks the popular talking point of USDA Secretary Tom Vilsack and the Renewable Fuel Association (RFA) that ethanol reduced gasoline prices by $0.89/gal in 2010 and $1.09/gal in 2011.

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The long drought will have real consequences for the nation's food and energy markets. But it also creates an opportunity for Washington to take a hard look at the Bush-era mandate known as the Renewable Fuels Standard.

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When motor fuel prices increase by up to $1.09/gal nationwide over a 10-year period, refiners increase output and take advantage of this opportunity to sell more of their product at higher prices. In the process, supply would come back into balance with demand, pushing fuel prices down.

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