Moving the Point of Obligation Is the Latest Misguided Ploy to Undermine the RFS
by Senators Joni Ernst (R-IA) and Tammy Duckworth (D-IL) (The Hill) Six billion gallons. That is the approximate amount of ethanol produced in Iowa and Illinois each and every year. It is more than the annual gasoline equivalent production of some Organization of the Petroleum Exporting Countries (OPEC) members.
The RFS has been a critical piece of our domestic energy revolution, offsetting billions of barrels of foreign oil that would otherwise have been imported as our dollars went overseas.
This Made in America energy supports tens of thousands of jobs across the country, and has an economic ripple effect throughout farm country, rural communities and the entire nation.
most recently—attempts to move the so-called “point of obligation,” which currently requires petroleum importers and refiners to meet certain ethanol inclusion goals, away from refiners and onto downstream entities – blenders and retailers.
This latest attack is simply another tactic that aims to inject further uncertainty into the program, create a compliance nightmare, and upend the market dynamics that have led to expanded consumer acceptance of renewable fuels. When the EPA structured the RFS program, it placed the point of obligation with the petroleum refiners and importers to keep regulatory complexity to a minimum and to incentivize those parties to provide petroleum blendstock suitable for the inclusion of renewable fuels.
Moving the point of obligation downstream to blenders would significantly increase the number of parties obligated to meet the goals from a few hundred to many thousands. This would create a compliance nightmare for both the EPA and the numerous newly-obligated parties, many of whom would be small and mid-sized retailers with no experience in dealing with this level of regulatory compliance. More importantly, shifting the point of obligation downstream would leave the refiners with little incentive to provide the appropriate gasoline blends, hanging the retailers out to dry.
As Veterans who have fought to defend this nation, we have seen firsthand the price we pay for our dangerous dependence on oil imported from our adversaries. READ MORE and MORE (Ethanol Producer Magazine/Growth Energy) and MORE (The Hill) and MORE (Idaho State Journal)