Senators Chuck Grassley and Amy Klobuchar led 23 senators in a bipartisan letter urging President Trump to maintain the point of obligation under the Renewable Fuel Standard (RFS) and deny proposed changes that would derail the current, successful program. The point of obligation designates who in the fuel supply chain is responsible for blending biofuels, and is a mechanism that ensures higher blends of renewable fuels reach the marketplace.
“Growth Energy thanks Sen. Grassley, Sen. Klobuchar, and the other 21 senators leading this important effort to support the Renewable Fuel Standard (RFS), the nation’s most successful energy policy. The point of obligation is a vital component of the RFS and is working as intended to make sure that consumers have a choice of fuel at the gas pump. Growth Energy has consistently opposed any change in the point of obligation.
“The fact is – shifting the point of obligation from refiners and importers to fuel marketers, convenience stores, railroads, truck stops and trucking companies, and even consumer service companies like FedEx and UPS – would throw the RFS into chaos. A change would immediately trigger long and complicated rulemaking that would take years to complete. It would create long-term uncertainty in the entire marketplace and reduce consumer choice at the gas pump by removing the economic incentive for retailers to offer higher biofuel blends, ultimately raising prices on consumers.
“The vast majority of the industry remains united in its opposition to any change to the point of obligation. An America-first energy policy means American consumers can access cleaner, more affordable biofuel options at every gas station nationwide. This is an issue where there is no room to equivocate or barter – preserving the point of obligation is essential to maintaining a strong RFS and growing ethanol demand in the U.S.
“We stand proudly with these 23 senators in opposition to this change and will continue to fight for the ethanol industry and rural America.”
Growth Energy News ReleaseShare