The Issue
The Renewable Fuel Standard (RFS) requires all U.S. fuel manufacturers and importers to include a minimum amount of renewable fuel in their products. The program was designed to decrease petroleum imports and reduce CO2 emissions by taking advantage of biofuels.
Though the RFS has been in place for more than a decade, a small group of fuel manufacturers is trying to convince the U.S. Environmental Protection Agency (EPA) to shift their renewable fuel obligations and compliance costs onto others. Rather than adapt to the law, this small group wants to rig it in their favor instead.
This change in the point of obligation would shift the economic cost of blended fuels onto a new and much larger group of obligated parties across the country, including petroleum marketers, terminal operators, fuel blenders, and certain service station owners, railroads, trucking companies and others, many of which are locally owned businesses. The change would inject inefficiency and complexity into the compliance process and would result in:
01. Increased Fuel Costs
Shifting the costs to local gas station leaves small business owners at the mercy of fuel producers who no longer have any incentive to produce renewable fuels at a reasonable cost. Gas stations can’t control the nation’s fuel supply, which is why it’s unfair to hold them accountable.
02. Decreased Consumption Of Renewable Fuels
The RFS is designed to promote clean air, stable prices and a reliable supply, however, the RFS doesn’t require consumers to buy renewable fuels. The only reason Americans buy blended fuel today is because gas stations are able to offer it at a competitive price. Even a slight increase in costs will push consumers towards non-renewable fuels.
03. Increased Administrative Costs
Put simply, changing the law would increase EPA regulation and compliance costs for local retailers. There are substantially more gas stations than importers or manufacturers in the U.S., meaning shifting the burden onto local fuel retailers would boost their costs and unnecessarily increase EPA oversight.
News
PRESS RELEASE: Main Street Energy Alliance Applauds EPA Administrator Pruitt’s Commitment To Maintaining RFS Point Of Obligation
Download The PDF Washington, D.C. - The Main Street Energy Alliance (MSEA) released the following statement in response to Environmental Protection Agency (EPA) Administrator Scott Pruitt's recent letter in which he committed to maintain the current point of [...]
PRESS RELEASE: New Video Breaks Down The Cost Of Moving The RFS Point Of Obligation
Download The PDF Washington, D.C., May 22, 2017 – Today, the Main Street Energy Alliance (MSEA) released the following statement highlighting a new video about the negative impact of shifting the Renewable Fuel Standard's (RFS) point [...]
About Us
The Main Street Energy Alliance is a coalition of industry associations, businesses, and concerned citizens who want to ensure affordable energy for the American public.
Our organization is currently focused on preserving the point of obligation requirements in the EPA’s Renewable Fuel Standard while opposing changes to the requirement that would raise costs for businesses and consumers or add to the bureaucracy at the EPA.