Grassley and Klobuchar lead 23 senators in letter urging Trump to maintain point of obligation

March 20, 2017 |

In Washington, Sen. Chuck Grassley and Sen. Amy Klobuchar has led 23 senators in a bipartisan letter urging President Trump to maintain the point of obligation under the Renewable Fuel Standard (RFS) and reject proposed changes that would upend the current successful system.

“We believe such changes are unwarranted and indefensible,” the senators wrote to Trump.  “We appreciate the commitment you have made to support the RFS. We strongly urge you to steer clear of administrative changes to the policy that would undermine the program and run contrary to your goals of promoting domestic energy independence and more choices at the pump. We look forward to working with you to ensure the RFS continues to provide the stability and predictability that is creating jobs and economic growth across the country.”

The senators outlined the detrimental effects of changing the point of obligation from refiners to blenders, marketers or retailers, as one prominent refiner is suggesting.  Shifting the point of obligation would give refiners little incentive to produce necessary fuel blends, making it difficult for downstream entities to comply, the senators wrote.

Changing the point of obligation also would “result in a massive, costly, time-consuming shift in compliance” because small businesses, especially in rural areas, lack the resources needed to comply.  The program administration would become complicated and “unnecessarily result in significant uncertainty and market disruptions,” the senators wrote.

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