ALEXANDRIA, Va. – Yesterday, NACS sent a response toquestions (PDF) from the House Committee on Energy and Commerce white paper on the blend wall and Renewable Fuels Standard (RFS). The letter was sent to
House Energy and Commerce Committee Chairman Fred Upton (R-MI) and Ranking
Member Henry Waxman (D-CA).
The response stated: “In
general, NACS believes that the fundamental assumptions that guided Congress’
decision to expand the RFS in 2007 have changed. At that time, most expected
the nation’s fuel demand and reliance on imported energy supplies to continue
on an unrelenting upward trajectory. Today, these assumptions are no longer
accurate — yet the program enacted in 2007 remains unchanged.
“The domestic fuels market
is dynamic and conditions are ever changing. As such, it is important any
long-term fuels policy be constructed with inherent flexibility to accommodate
such changing market conditions. If not, the market is bound to encounter
unintended consequences, most of which will be very difficult and potentially
expensive to overcome. Ultimately, all expenses incurred by the market will be
borne by the consumer. We are beginning to encounter such challenges with the
implementation of the RFS and it is appropriate that Congress begin asking
questions about the implementation strategy and the effect this program will
have on the market.”
The response outlined in
detail answers to questions about the effect of the blend wall on gasoline
retail prices and the impact of E15. “NACS appreciates your interest in
reviewing the complex issues surrounding this program and encourages you to
proceed cautiously, to avoid politically charged reactionary policies and to
consider options that will promote regulatory certainty and enable the market
to deliver to the consumer the fuels they demand in the most cost efficient
manner possible.”