WASHINGTON – The Association of American Railroads, the American Short Line and Regional Railroad Association, the American Trucking Associations, and the Owner-Operator Independent Drivers Association have entered their opposition to changing the Renewable Fuel Standards (RFS). This week, the associations sent a letter to Gina McCarthy, administrator of the U.S. Environmental Protection Agency (EPA) asking her to not move the point of obligation under the RFS.
The letter said that the EPA “has acted responsibly in denying previous petitions for a rulemaking to change the point of obligation and support EPA’s current regulatory action to deny similar petitions. The current petitions are proposing to move the point of obligation to entities that have never been obligated previously and that are not equipped to comply. Granting these petitions would disrupt the fuels markets, raise consumer fuel prices, and do so with no added benefit to the consumer or the program. We represent diverse interests but we are in agreement about this point.”
In December, NACS, along with seven other fuels groups, requested the EPA reject recent petitions to change the point of obligation for RFS. On November 22, the EPA formally announced plans to retain the existing “point of obligation” under the RFS program in a Federal Register notice. In support of its position, EPA completed a comprehensive analysis of the existing structure of the RFS, highlighting why and how the current point of obligation furthers the objectives of the RFS: to displace petroleum from unstable sources with renewable substitutes. The current RFS structure incentivizes the blending and sale of renewable fuel products by fuel retailers and marketers, while supporting continued supply and stable prices.
“The coalition letter sent to EPA today further demonstrates the broad range of stakeholders who support keeping the point of obligation where it is,” stated Paige Anderson, director, government relations for NACS. “It is rare to see such a diverse and unique set of interests come together in support of a fuels issue. We hope EPA and Congress take note and oppose efforts to shift the point of obligation.”