Letter Urges White House to Maintain Point of Obligation Under RFS

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A bipartisan letter including the signatures of 23 senators urged the Donald Trump administration to maintain the point of obligation under the Renewable Fuel Standard. The letter asks the White House to deny proposed changes that would “derail the current, successful program.” Led by Iowa Republican Chuck Grassley and Minnesota Democrat Amy Klobuchar, the letter says shifting the point of obligation would give refiners little incentive to produce necessary fuel blends, making it difficult for downstream entities to comply. 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 CEO Emily Skor thanked the senators for the letter last week, noting that Growth Energy has consistently opposed any change in the point of obligation. Skor says changing the point of obligation would trigger a long and complicated rulemaking process, and create long-term uncertainty in the fuel marketplace.