EPA Proposes Denying Oil Refiners’ Renewable Fuel Standard Petition
The Environmental Protection Agency (EPA) has proposed denying several petitions by oil refiners intent on changing the point of obligation under the Renewable Fuel Standard (RFS). Under the current RFS rules, oil refiners are obligated to blend more renewable fuel into the nation’s transportation fuel supply. The refiners want the EPA to change the obligated party from the refinery to the owners of the gasoline before it is blended for retail sale.
"EPA believes that a change in the point of obligation would be a substantial disruption that has the potential to undermine the success of the RFS program, as a result of increasing instability and uncertainty in programmatic obligations," the EPA said in its proposed denial. "We believe that the proponents of such a change bear the burden of demonstrating that the benefits are sufficiently large and likely that the disruption associated with such a transition would be worthwhile. We believe that the current structure of the RFS program is working to incentivize the production, distribution, and use of renewable transportation fuels in the United States."
The EPA is also seeking public comments on its proposed denial of the requests to initiate rulemaking.
While several different industry groups are counting the agency’s proposed denial as a victory — ethanol producers, retail stores, and gasoline suppliers, among others — oil refiners say the open public comment period proves that their petitions have merit.
NAFA Fleet Management Association
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