EPA Opens Public Comment Period on RFS ‘Point of Obligation’

NACS and SIGMA commend the EPA for protecting consumers and for preventing an unnecessary upheaval in the U.S. fuel market.

November 22, 2016

WASHINGTON – The Environmental Protection Agency (EPA) has formally announced in the Federal Register that it plans to retain the existing point of obligation under the Renewable Fuel Standard (RFS) program. 

“The current point of obligation ensures that the Renewable Fuel Standard program’s goals can be achieved. Since the founding of the program, NACS and SIGMA have supported the placement of the point of obligation on those entities that control the composition of petroleum products in the U.S. market—and the associations have advocated tirelessly over the last year to maintain the current point of obligation,” said Timothy Columbus, counsel to NACS and SIGMA, in a Nov. 11 press release.  

EPA has completed a comprehensive analysis of the existing structure of the RFS, highlighting why and how the current point of obligation furthers the objectives of the RFS: to displace petroleum from unstable sources with renewable substitutes. The current RFS structure incentivizes the blending and sale of renewable fuel products by fuel retailers and marketers, while supporting continued supply and stable prices.  

Metroplex Energy, a wholly-owned subsidiary of RaceTrac Petroleum Inc., also announced its support of the EPA’s proposal. “Metroplex Energy thanks the EPA for its opposition to change the point of obligation under RFS,” said Max McBrayer, chief supply officer at RaceTrac and president of Metroplex Energy. “The current structure is the best approach to ensure that RFS program goals can be achieved.”

As part of the Federal Register notice, the EPA will be accepting public comments through January 23, 2017. To read the proposed denial and find ways to submit your own comments, please see the Federal Register notice here. NACS intends to submit comments on behalf of the association and will be providing information on how its members can file comments in the coming weeks.

Advertisement
Advertisement
Advertisement