Governors' Biofuels Coalition

Independent refiner Valero Energy wants EPA to respond to its petition to change the compliance point for the Renewable Fuel Standard, and the company is prepared to sue to force the action, a source close to Valero with knowledge of the suit told POLITICO. Responsibility for complying with the RFS falls to refiners who must buy credits that prove their fuel has been blended with biofuel. Valero, which has said the program could cost it $850 million this year, petitioned EPA in June to shift this responsibility downstream to blenders at the terminal rack. EPA has not yet responded to the petition, prompting Valero to push this suit. “Valero has worked tirelessly to provide EPA data and all information relevant to the Point of Obligation and the requested revision,” said an overview of the suit provided by the source. “However, Valero must pursue all legal avenues available to promote a change in the RFS program that Valero believes is necessary for the program’s success.” The refiner is also suing EPA in the D.C. Circuit to force the agency to make the change to the program. The suit is part of a larger, consolidated lawsuit (16-1005).

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