EPA Rejects Petitions to Change Point of Obligation in RFS
Source: By Todd Neeley, DTN/Progressive Farmer • Posted: Wednesday, November 29, 2017
Refiners and importers of gasoline and diesel will continue to be the point of obligation in the Renewable Fuel Standard. (DTN file photo)
OMAHA (DTN) — The U.S. Environmental Protection Agency rejected several petitions to change the point of obligation in the Renewable Fuel Standard in a notice released on Wednesday ahead of a posting in the Federal Register.
In the EPA notice, the agency said petitioners didn’t prove their case.
“In evaluating this matter, EPA’s primary consideration was whether or not a change in the point of obligation would improve the effectiveness of the program to achieve Congress’s goals,” the agency said. “EPA does not believe the petitioners or commenters on the matter have demonstrated that this would be the case. At the same time, EPA believes that a change in the point of obligation would unnecessarily increase the complexity of the program and undermine the success of the RFS program, especially in the short term, as a result of increasing instability and uncertainty in programmatic obligations.”
The EPA said changing the point of obligation would “not address” the challenges associated with commercializing cellulosic biofuels.
Reports surfaced in February that President Donald Trump, along with his adviser at the time, billionaire energy investor Carl Icahn, had prepared an executive order to change the point of obligation in the RFS from refiners and importers of gasoline and diesel to ethanol blenders.
A White House spokesperson later denied to DTN that such an executive order existed, and the president has not issued such an order.
Ethanol industry representatives and some oil interests opposed to the switch have feared it would discourage expanded ethanol blending. Groups that support the switch claim that obligating blenders would spread compliance costs through the renewable identification number, or RIN, market. That market is designed to allow obligated parties to show compliance with the law by buying either physical gallons or the credits attached to actual gallons produced.