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AFPM files petition for rulemaking with EPA

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Hydrocarbon Engineering,

The American Fuel & Petrochemical Manufacturers (AFPM) filed a petition for rulemaking with the Environmental Protection Agency (EPA) to move the point of obligation under the Renewable Fuel Standard (RFS). The petition asks EPA to move the point of obligation to the owner of the hydrocarbons at the rack, the same point where fuel excise taxes are collected.

AFPM President Chet Thompson commented on the petition: “The problems with the Renewable Fuel Standard (RFS) are pervasive and AFPM will continue to fight for its repeal, but until that happens the EPA has the responsibility to ensure that the programme is operating as effectively as possible, which today it is not.

“EPA committed to reconsidering the point of obligation if it became clear that the Renewable Identification Numbers (RINs) market is not functioning as it intended. And, with RIN prices trading recently at a dollar or more, this is certainly the case. Moving the point of obligation closer to the point of compliance would make the RFS programme more sensitive to market needs and reduce consumer costs, and provide some relief until Congress can take appropriate action.”

Adapted from press release by Rosalie Starling

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