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
AZ Central: Changing How Ethanol Is Added To Gasoline, And That Could Affect How Much You Pay
By Mike Mathers Here’s the deal: When you pull into an Arizona gas station, you may notice that sticker on the pump telling you that the gas you’re buying contains ethanol. Ethanol, a biofuel that [...]
PRESS RELEASE: The Main Street Energy Alliance Welcomes The Advanced Biofuels Association
Murphy USA Also Joins More Than A Dozen Main Street Energy Retailers In Fight Against Moving The RFS Point Of Obligation Download The PDF Washington, D.C., – Today, the Advanced Biofuels Association (ABFA) and Murphy USA [...]
BROWNFIELD: Main Street Energy Alliance Formed To Preserve Point Of Obligation
By Mark Dorenkamp Concerns about moving the point of obligation under the Renewable Fuel Standard has led to the forming of the Main Street Energy Alliance. Michael Steel, president of the Alliance, says the group [...]
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.