By Ryan McNutt
Some obligated parties, those tasked with blending ethanol into our fuel supply, such as fuel importers and refiners, claim to have had trouble meeting their RFS obligations. However, that’s simply not the case. There are multiple options for them to meet their obligation. Their qualm is not about technical challenges but about a perceived unfair cost.
A minority of obligated parties is now advocating for policymakers to move the point of obligation down the supply chain. Instead of putting the obligation of blending ethanol into our fuel supply on the shoulders of refiners or importers they want fuel marketers – such as gas stations and other fuel retailers – to shoulder the burden. That would be a costly mistake.
This shift in the point of obligation could raise fuel prices for consumers, reduce our use of renewable biofuels and add more bureaucratic complexity to a rule that already has plenty. Pushing the point of obligation on retailers would place a huge burden on many small businesses that do not have the expertise and materials needed to navigate the complexity of RFS compliance reporting. Read more…