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Coalition Formed to Maintain RFS Point of Obligation at Refiner Level

 

This week, a new coalition known as the "Main Street Energy Alliance" was formed to combat efforts to move the RFS point of obligation from refiners/imports to position holders at the terminal rack. Click here for a list of members and additional information. Another coalition was formed earlier this year known as the Small Retailers Coalition who continues to urge the Trump Administration to move the point of obligation to the position holder at the terminal rack. Click here for more information on this coalition.

Reducing the Renewable Fuel Standard’s (RFS) 15-billion-gallon ethanol mandate (which was increased in the last few months of the Obama Administration) continues to be a PMAA top priority this year. The ethanol mandate has raised the value of renewable identification numbers (RINs) thereby creating an uneven playing field in the retail motor fuels market. Related to this issue has been the petition to the EPA to move the point of obligation from the refiner level to the position holder at the rack to reduce the value of RINs. The comment period deadline for that petition was February 23, 2017.

PMAA continues to believe that the best path forward to reduce RIN values and avoid UST compatibility concerns with the corn ethanol mandate is to immediately reduce the ethanol mandate below the E10 blendwall.

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