It hasn't been an easy spring for oil and gas trade associations in Washington. The change of administration also brought a shift in emphasis from addressing global climate change to reviewing and possibly streamlining regulations.
Appointments to lead key agencies have taken longer than usual. Several significant top positions-most notably at the US Federal Energy Regulatory Commission-remain unfilled.
Referring to the three FERC vacancies, US Senate Energy and Natural Resources Committee Chair Lisa Murkowski (R-Alas.) said during a May 3 event at the Center for Strategic & International Studies: "I keep hearing from the White House that it's imminent. I'm looking forward to meeting Mr. or Ms. Imminent."
In the meantime, association staffs have continued to work with career agency employees. The trade group representatives also have gone on building cases for changes in underlying requirements. These may not be addressed immediately, but they still matter.
One such case is whether to change the point of obligation for meeting biofuel quotas under the federal Renewable Fuel Standard for motor fuels. The American Fuel & Petrochemical Manufacturers and others petitioned the US Environmental Protection Agency last year to move that point from refiners and blenders to the wholesale level, where states already collect excise taxes.
The American Petroleum Institute opposed the idea saying it would create more problems than it would solve and divert attention from reforming or repealing the RFS itself, which API considers seriously flawed. EPA said in November that it was inclined to deny the petition but has not issued a final decision.
API wants a more definitive answer. So do the National Association of Truck Stop Operators, the Society of Independent Gasoline Marketers of America, and the National Association of Convenience Stores.
"Adding more obligation points for companies unfamiliar with the process could increase costs for consumers," warned API Downstream and Industry Operations Group Director Frank J. Macchiarola at a May 4 briefing with representatives of the three other associations.
'Massive uncertainty'
"From our standpoint, fuel retailers want to sell what consumers want. Changing the obligation point would inject massive uncertainty into the system," said Eva Rigamonti, an associate at Steptoe & Johnston LLP's Washington office, which represents SIGMA and NACS.
"Keeping fuel prices low gives consumers more money to spend at truck stops' convenience stores, restaurants, and repair facilities," explained NATSO Public Affairs VP Tiffany W. Neuman. "For our members' customers, fuel is second only to labor in costs. Making prices higher would affect everyone's transportation costs."
Macchiarola said, "This is an active issue. We hope it can be resolved soon so we can concentrate on other RFS problems. Right now, it's a distraction."
