Short of repealing the law completely, the EPA can fix many of the problems plaguing the mismanaged program by requiring ALL blenders to comply with the RFS. This would put blenders, refiners and importers on a more level playing field, and ultimately, allow for better marketplace competition that could reduce the price Americans pay at the pump.
Despite continued warnings, the EPA has chosen to ignore a fundamental flaw in the RFS – the Blender Loophole – that is preventing the program from working as intended. The EPA currently designates refiners and importers, but not blenders, as the parties legally obligated to comply with the RFS. Simply put, this defies common sense.
By exempting blenders from the RFS mandate, the EPA has placed the compliance obligation on the parties with the least control over renewable fuel blending.
This has created a giant loophole that discourages the increased use of renewable fuels while creating windfall profits for the exempt blenders – the very opposite of what the RFS is intended to do.
If the EPA closed this loophole, blenders would have both a legal obligation and financial incentive to increase renewable fuel use – the same as refiners and importers – and the RFS will have a better chance of working as intended. The EPA must move the point of obligation to include the parties that control the blending process. This would benefit consumers, as well as the many companies involved in the program.
This is not only an obvious solution; IT IS THE LAW! Each year, the EPA is required to make the “appropriate” parties responsible for complying with the RFS program. It is time for the EPA to follow the law and close the blender loophole, making all blenders responsible for compliance.
WHAT CAN I DO TO FIX THE BROKEN RFS?
Send a message to our elected leaders in Congress and let them know the RFS is broken and needs to be fixed. The EPA’s mismanagement of the program is hurting consumers, merchant refiners, small refiners and small retailers.
Sometimes, even good intentions just go bad. Such is the case with the RFS, which reflects many years of EPA mismanagement.
The EPA has been unwilling to take action on this issue, despite the burdens it is placing on consumers and businesses. Since the EPA has failed to address the broken RFS, we are calling on Congress to take action immediately.
Your voice is critical in bringing sensible, consumer- and business-friendly reforms to this misguided legislation.