Renewable Fuel Standard's Point of Obligation

Renewable Fuel Standard's Point of Obligation

Recent rumblings in the ethanol industry over changing the point of obligation included in the Renewable Fuel standard made for confusion over the RFS. A change in point of obligation would mean that the refiners and importers would be able to move legal obligations under RFS to downstream entities like the blender, marketer or retailer.

Growth Energy CEO Emily Skor says changing the point of obligation in the RFS law would be harmful to the program and the biofuels industry.

Skor: "Our position on what would happen with a change in the point obligation — this is based on facts and proven market behaviors over the past 11 years. This is all about what we know to be the case and how the actors in the Fuel supply chain will behave. If you change the point of obligation first you are going to throw the program into chaos. Secondly you are going to create long-term uncertainty in the entire market place. We've lived through uncertainty for several years when EPA wasn't coming out with renewable volume obligations as they should have been. That isn't good for business that is not good for business investment. And third it will halt the market expansion of E15 because you take away the economic incentive for the retailers that are currently selling E15 to sell it in the future."

 

She says Growth Energy fully supports the RFS in its current form, that allows for certainty and growth in the industry.

 

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