WASHINGTON - NACS yesterday commended U.S. Representatives Mike Ross (D-AR) and John Shimkus (R-IL) for introducing legislation (H.R. 5778) that seeks to ensure retail motor fuels equipment is safe and legally compatible to sell renewables fuels greater than E10 and B5.
The renewable fuels standard (RFS) established by Congress in 2007 requires the use of 36 billion gallons of renewable fuels (such as ethanol) in motor fuels by 2022. However, the law did not take into account infrastructure roadblocks that limit the amount of renewable fuels that can be sold through existing retail motor fuels outlets.
Currently, it is illegal for retailers to store and sell any fuel with greater than 10 percent ethanol (including E85) or more than 5 percent biodiesel using existing infrastructure. Retailers must use equipment certified by a nationally recognized testing laboratory like Underwriters Laboratories (UL) as compatible with the fuel they are selling. Failure to do so exposes the retailer to claims of gross negligence liability, violation of local fire codes and OSHA regulations, violation of tank insurance and state tank fund policy requirements, and provisions contained in many business loan agreements. As of July 15, 2010, there were only 2 certified dispensers to sell E85 and only 2 certified dispensers to sell up to E25.
Yesterday, Reps. Ross and Shimkus introduced H.R. 5778, the Renewable Fuels Marketing Act of 2010, to authorize a new pathway for retailers to sell renewable fuels. The bill will enable retailers to have existing equipment evaluated and legally approved to sell new renewable fuels and will expedite the approval of new equipment. It also will protect retailers from Clean Air Act violations and liability associated with self-service consumers fueling unapproved engines with higher blends of renewable fuels.
This legislation will open the door to the marketing of additional renewable fuels consistent with the RFS, avoid imposing unsustainable costs on petroleum retailers, and remove the certainty of litigation from the market. This legislation does not in any way absolve a retailer from liability or obligations under federal and state environmental laws that arise from a "release" of motor fuels.
NACS, along with NATSO (Representing America€™s Travel Plazas and Truckstops), Petroleum Marketers Association of America (PMAA), Renewable Fuels Association (RFA) and Society of Independent Gasoline Marketers of America (SIGMA), sent a letter to Congress communicating support for H.R. 5778.
"The Renewable Fuels Marketing Act is a critical step towards removing some of the obstacles that stand in the way of increasing the availability of renewable fuels at petroleum retail outlets across the nation and will greatly facilitate the successful [RFS] implementation," noted the letter.
To learn more about H.R. 5778, read the attached summary. If you have any questions, contact NACS Vice President of Government Relations John Eichberger.