How the clash over ethanol ’ s point of obligation impacts you
Don ’ t Lose the Option to Choose
How the clash over ethanol ’ s point of obligation impacts you
Having choices is good , whether you ’ re deciding something complex , such as which vehicle to purchase , or something more routine , like what fuel to select at the gas station . Your opportunity to choose renewable fuels could be in jeopardy , however , due to a critical issue called the “ point of obligation .”
Under the federal Renewable Fuel Standard ( RFS ), oil refiners are the obligated parties . Therefore , they are the “ point of obligation ” under the RFS . It has worked well since the program ’ s inception over a decade ago .
“ The battle over the point of obligation has been brewing for several years ,” said Chris Bliley , vice president of regulatory affairs for Growth Energy . “ If the point of obligation shifts , it would derail the RFS and mean fewer choices for consumers .”
The issue has far-reaching consequences because 97 percent of all gasoline today is blended with ethanol , Bliley added .
That ’ s why Growth Energy has been actively opposing changes to the point of obligation . To help clarify this complex issue , American Ethanol talked with Bliley , who explained how shifting the point of obligation would impact drivers ’ ability to choose renewable fuels .
American Ethanol ( AE ): If the current system works , why mess with it ?
Bliley : A number of lawmakers , retailers , consumer companies like UPS , and even railroads are asking this same question . Supporters of the biofuels industry note that keeping the point of obligation where it is now , with oil refiners and importers , has worked well and makes sense . Moving the point of obligation
Chris Bliley , Growth Energy ’ s vice president of regulatory affairs , addresses the 2017 Executive Leadership Conference .
What Retailers Are Saying
“ Sheetz is the largest retailer of E15 and E85 in the U . S . today , so we know what it takes to sell higher blends of ethanol . Changing the point of obligation would be the death knell for the RFS .”
Mike Lorenz executive vice president of fuels
8 AMERICAN ETHANOL THE MAGAZINE