Renewable Fuel Standard Program Under Review of Senate Committee

Supporters and opponents both spoke out at an oversight hearing yesterday.

February 25, 2016

WASHINGTON – Yesterday, the Senate Environment and Public Works Committee held an oversight hearing on the Renewable Fuel Standard (RFS) program. Witnesses included: EPA Acting Administrator Janet McCabe; Energy Information Administration Deputy Administrator Howard Gruenspecht; President of the Energy Policy Research Foundation Lucien Pugliaresi; Energy Policy Consultant and Former Special Assistant to the President for Energy and Environment Ronald Minsk; and Executive Director of the Advanced Biofuels Business Association Brooke Coleman.

Critics of the RFS focused their arguments on the lack of need of a mandate and how the economic assumptions that the RVOs are based in the statute no longer apply. Supporters of the RFS, on the other hand, shared their disappointment that the EPA didn’t go far enough in their released volumes for 2014-2016.

Despite the differing views on the RFS, there were two areas of agreement. First, everyone recognized that the development of the cellulosic ethanol market has been difficult and has not met expectations. Second, senators urged the EPA to issue the 2017 volumes on time. Several lawmakers pointed out that the uncertainty created by delays on finalizing the renewable fuel volumes is harmful to the market and discourages the necessary investment in bringing more renewable fuels into the market.

One issue of particular concern to NACS that was raised at the hearing was the issue of whether or not the obligated party should shift from the importer and manufacturer to the blender.  NACS believes the obligated party should remain with the importer and manufacturer and would oppose any efforts to move this obligation onto the retailer. These concerns were outlined in a letter NACS sent to the committee to be submitted into the hearing record, along with comments NACS provided to the EPA last summer. 

Though legislative action is unlikely this year, NACS will continue to educate and work with policymakers in ensuring that the fuel retailing industry is protected from harmful and burdensome legislation.

Advertisement
Advertisement
Advertisement