EPA Finalizes Denial of Requests to Change “Point of Obligation”

On November 30, U.S. EPA published its final determination to deny requests to change the “point of obligation” under the Renewable Fuel Standard (RFS) program. The decision was consistent with EPA Administrator Pruitt’s earlier indications, including an October 2017 letter to seven Senators. 

Previous requests generally sought to move compliance with the RFS volume requirements from refiners and importers of gasoline and diesel fuel to entities downstream (e.g., “position holders” at the rack). The decision re-affirmed that EPA's existing definition of “obligated party” applies “in all years going forward unless and until it is revised.” 

Among the several reasons identified in support of its denial was that EPA did not believe a change in the definition of obligated party would result in increased investment in cellulosic biofuels. The denial constitutes final agency action that is judicially reviewable under 42 U.S.C. §7607(b) of the Clean Air Act, id., and there are already several cases involving this issue.

View more information on EPA’s determination HERE.