EPA Hits Sweet Spot in RFS Reform, Fuel Retailers Say

Fuel marketers will continue to have a strong incentive to incorporate renewable fuels into the fuel supply

NATSO, the national association representing truckstops and travel plazas, the National Association of Convenience Stores (NACS) and the Society of Independent Gasoline Marketers of America (SIGMA), the trade associations representing the fuel retailing community in the United States, today commended the Environmental Protection Agency (EPA) for finalizing only those aspects of its RIN Market Reform Proposal that enhance disclosure requirements.

The final rule, which also allows for the sale of E-15 year-round throughout the United States, sets aside certain proposals that would have reduced the incentives for fuel retailers who buy, sell and blend renewable fuels.

“We are still analyzing the rule, but at first glance we are pleased that EPA appears to have hit the sweet spot here by reasonably enhancing disclosure requirements without altering market participants’ behavior,” the trade associations said in a joint statement. “We appreciate that EPA chose not to promulgate unnecessary regulations that came with a high likelihood of unintended, counterproductive consequences.”

EPA initially had proposed a number of reforms that would have reduced the incentives for retailers to continue buying, blending and selling renewable fuels. In comments filed with EPA as part of the rulemaking process, the fuel retailing groups opposed those reforms, which would have disrupted the market.

They did not object to the sale of E-15 year-round, nor did they oppose enhanced disclosure requirements.

The trade associations are pleased that the agency’s final rule ensures that fuel marketers continue to have a strong incentive to incorporate renewable fuels into the fuel supply.

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