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Main Street Energy Alliance formed to preserve point of obligation

Concerns about moving the point of obligation under the Renewable Fuel Standard has led to the forming of the Main Street Energy Alliance.

Michael Steel, president of the Alliance, says the group wants to make sure policy makers in Washington, D.C. understand what’s at stake if EPA’s point of obligation requirements are not preserved.

“It would hurt small businesses on Main Streets across the United States.  It’s very likely to raise costs for consumers, everybody putting gas in the tank.  (we think) It would also reduce the use of biofuels in the United States.”

The Main Street Energy Alliance consists mostly of fuel retailers, who Steel says would face increased complexity and costs if the point of obligation moved away from refiners.

“We’re currently looking at something like 150 obligated parties under the current system.  No one seems to have a definitive number of how many parties it would be if you move the point of obligation.  But there is a complete consensus that it would increase drastically.”

Steel tells Brownfield compliance costs would trickle down to consumers in the form of higher gas prices.

He says members of the Alliance began discussing the issue before rumors surfaced in late February suggesting President Trump would issue an executive order changing the point of obligation from refiners to retailers.

The White House maintains no such order exists.