By Mark Griffin

My father started our company in 1964 with one filling station in Lubbock, Texas. We now operate terminals, fuel storage facilities, retail gas-stations and truck-stops across the Southwest. Among other services, we blend ethanol and biodiesel into traditional fuels, as required under the RFS. We also ship unblended fuel to terminals across the country. Mr. Icahn argues that shifting his burden onto our business will increase the use of biofuels and promote energy independence. The opposite is true.

The renewable credits that are available for blending are a pass-through cost regardless of the point of obligation. For refiner’s that cannot blend enough renewables to meet the RFS – they can buy credits or export fuel to offset those costs. As a terminal operator – we can only offset our costs by blending renewable fuels. Shifting the point of obligation means we would incur significant losses shipping to terminals that we don’t control – and we would stop doing so as a result. This is exactly what is happening in California which operates under the same onerous rules that Mr. Icahn wants EPA to impose on the rest of the country. By the close of 2016, we will stop shipping fuel to California. Were EPA to follow suit, our company alone would see a reduction in the consumption of renewable fuels by 40% based on 2015 numbers. Read more…