Effects of Moving the Compliance Obligation under RFS2 to Suppliers of Finished Products

Sat Jul 25 16:18:07 EDT 2015
Robert Baron, Dr. Paul Bernstein, Alyssa Lipshultz, Dr. W. David Montgomery, and Dr. Timothy Watts

NERA Economic Consulting was retained by Valero Energy Corporation to analyze how requiring refiners to blend renewable fuels has affected the Renewable Fuel Standard (RFS2) program’s ability to achieve its goal of promoting renewable fuel use at minimum cost to consumers. In this report, the NERA team discusses how transferring the obligation for compliance with RFS2 from refiners to producers of finished transportation fuels (blenders) would remove a fundamental flaw in the current implementation of RFS2.