Coalition Formed to Protect Point of Obligation

Cindy Zimmerman

A coalition made up largely of fuel retailers has been formed to oppose efforts to change the point of obligation requirement under the Renewable Fuel Standard (RFS).

The Main Street Energy Alliance (MSEA) includes the National Association of Convenience Stores, NATSO (representing truck stops and travel plazas), the Society of Independent Gasoline Marketers of America, as well as Shell and BP. MSEA spokesman Michael Steel says refiners would benefit from the point of obligation change at the expense of consumers and small businesses. “Shifting the point of obligation would add complexity for businesses, decrease the use of biofuels, and potentially increase costs for consumers. Many energy businesses and consumers on Main Streets across this country could be negatively impacted by this effort to reward just a small few,” said Steel.

The RFS system currently places compliance requirements on the parties that control the composition of fuels – refiners and their investors – which creates a strong incentive for downstream fuel blenders, retailers, and marketers to blend renewable fuels into the supply chain while lowering prices at the pump.

biofuels, Ethanol, Ethanol News, Retailers, RFS