EPA rejects move to shift the Renewable Fuel Standard’s Point of Obligation 

November 13, 2016 |

In Washington, the US EPA proposed to deny requests from petitioners to initiate a rulemaking to change the point of obligation for compliance under the Renewable Fuel Standard program. Due to the importance, complexity, and broad stakeholder interest in this issue, the agency is taking public comment on the proposed denials to ensure we receive input from the wide variety of stakeholders that could be affected.

The petitioners all seek to have the point of obligation shifted from refiners and importers, but differ somewhat in their suggestions for alternatives. Some request that EPA shift the point of obligation from refiners and importers to those parties that blend renewable fuel into transportation fuel. Others suggest that it be shifted to those parties that hold title to the gasoline or diesel fuel immediately prior to the sale of these fuels at the terminal (these parties are commonly called the position holders), or to “blenders and distributors”. All petitioners argue, among other things, that shifting the point of obligation to parties downstream of refiners and importers in the fuel distribution system would align compliance responsibilities with the parties best positioned to make decisions on how much renewable fuel is blended into the transportation fuel supply in the United States. Some of the petitioners further claim that changing the point of obligation would result in an increase in the production, distribution, and use of renewable fuels in the United States and would reduce the cost of transportation fuel to consumers.

In response, Emily Skor, CEO of Growth Energy issued the following statement:

“The EPA has made the correct decision in proposing to deny this petition. The RFS is working and refiners have had over 11 years to comply with it. The current structure appropriately incentivizes marketers to blend additional biofuels, and encourages the availability of higher-level ethanol blends to retailers who wish to sell them. The bottom line is that the current point of obligation encourages consumer choice and cost savings at the pump, and any change would undermine the intent of the RFS and reward those parties who have refused to comply with the intent of the law. Growth Energy looks forward to providing substantive comments as to why the point of obligation should remain as is.”

More on the story.

Category: Policy

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