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Fuel Industry Advocates for Inclusive Approach Amidst New EPA Emission Rules
ALEXANDRIA, Va., March 20, 2024 — Respected entities within the American fuel industry, including NATSO representing America's travel centers and truck stops, along with SIGMA: America's Leading Fuel Marketers, and the National Association of Convenience Stores (NACS), have voiced their concerns regarding the implementation of the Environmental Protection Agency’s (EPA) new regulations on vehicle emissions. Their critique stems from the belief that the 'Light-Duty Vehicle Greenhouse Gas Regulations and Standards Final Rule' still leaves much to be desired in fostering a diverse technological approach to carbon emissions reduction, despite steps taken from a previous proposal.
"We are aligned with the Administration’s goal to curtail transportation-related emissions and acknowledge the Biden Administration’s efforts to achieve a more sustainable method of decreasing carbon emissions from light-duty vehicles. Nevertheless, the recently established Final Rule on Light-Duty Vehicle Greenhouse Gas Regulations and Standards only signifies a minor advancement from its initial counterpart," stated the joint associations.
This consortium believes that the most expedient and effective methods to reduce carbon emissions lie within a technology-agnostic framework. Such a strategy should be market-driven and center on consumer demands, encouraging advancements across all types of fueling technologies based on their individual environmental benefits and commercial potential. "Unfortunately, this latest rule appears to disproportionately favor one single technology, which, in its current state, has not conclusively demonstrated greater viability over other potential options," they explained.
These organizations, collectively representative of 90 percent of retail fuel sales, are at the spearhead of developments related to emerging refueling technologies. Actively engaged in numerous initiatives, these entities invest considerably in technologies aimed at reducing carbon emissions from transportation fuels. Their perspective emphasizes the need for overarching support for various technologies, proportionate to their relative impact on climate and their practical feasibility.
"The rule in its finalized form excessively caters to the requirements of auto manufacturers and their principal supply chains. It fails to adequately address the urgent need to expand the infrastructure for a safe and reliable electric vehicle (EV) charging station network," they asserted.
The associations further urged the Biden Administration and Congress to adopt policies that will invigorate the private sector’s investment in alternative fuel technologies, including EV charging infrastructures. Notably, they suggest allowing owners of direct current (DC) fast chargers to create electronic Renewable Identification Numbers (e-RINs) when utilizing electricity derived from qualified feedstocks. This provision would enable private fuel retailers to surmount outdated utility regulations, thereby facilitating the installation and maintenance of charging stations.
Additionally, automakers have expressed dissatisfaction over the scarcity of available public charging stations, yet they have concurrently discommended the EPA for permitting EV charging station owners from generating valuable e-RINs. In contrast, these manufacturers seem to prefer that such financial incentives go directly to them.
Furthermore, the fuel retail associations call for the establishment of a competitive marketplace for fast, publicly accessible EV charging stations. They advocate for regulated utilities to introduce specific EV tariffs that will promote business confidence in investing in charging stations. The ongoing profitability challenges faced by operators of these chargers must be addressed; otherwise, the hurdles faced by EV drivers in locating desirable refueling options remain.
Policies and market reforms more closely aligned with realistic expectations are imperative to coax private sector investments into alternative fuel technologies. Today, fuel retailers are proactive in setting up electric vehicle charging stations amidst an unclear forecast for financial return. The sector is accustomed towards long-term investment returns; however, clarity in the path towards profitability is critical for aligning with the timetables set by the Biden Administration.
About NATSO, NACS, and SIGMA
NATSO, the respected trade association representing the travel plaza and truck stop industry in America, was established in 1960. NATSO serves the industry by contributing to legislation and regulatory issues, functioning as the authoritative source for industry information, providing educational resources, organizing annual conventions and trade shows, and advocating for a more favorable business climate for members. The Vice President of Public Affairs, Tiffany Wlazlowski Neuman, can be contacted for further details at 202-365-9459.
The National Association of Convenience Stores (NACS) enhances the image of convenience stores as valuable and philanthropic staples in the communities they serve. This robust industry, featuring over 153,000 stores countrywide that sell a combination of fuel, food, and merchandise, welcomes nearly 165 million consumers daily, accounting for almost half of the U.S. population. Moreover, their sales constitute a significant 10.8% portion of all U.S. retail and foodservice transactions. NACS has an extensive network of 1,900 retailer members and 1,800 supplier members from over 50 nations.
SIGMA, originally founded as the Society of Independent Gasoline Marketers of America in 1958, has transformed into a pivotal force within the motor fuel marketing sector both in the United States and Canada. SIGMA's primary role is to serve as the national trade association for the industry's most successful, innovative, and forward-thinking fuel marketers and chain retailers. Currently representing roughly 250 independent chain retailers and fuel marketers, the association seeks to advance the interests of the branded and unbranded sectors of the industry, while offering an array of services and insights to its members.
The Path Forward for EV Infrastructure
As the debate over new vehicle emissions standards continues, industry leaders are poised to challenge and shape future policies. These associations have laid out clear and robust proposals to ensure that the ever-evolving landscape of vehicle technologies can advance without unfairly prioritizing one over another. Their collective voice speaks for the vast portion of fuel-related commerce and holds significant sway in the determination of the country’s environmental and energy policies moving forward.
The Biden Administration has been vocal about a future where electric vehicles play a significant role in reducing the transportation sector's carbon footprint. Nonetheless, establishing a nationwide network of charging stations, a goal shared with the Administration, relies heavily on private investment and market-driven solutions. The tension between the regulations and the need for profitability represents a complex puzzle that must be addressed to achieve a fully functional and accessible EV infrastructure.
In response to these directives, the fuel industry calls for an even playing field, where technology-neutral approaches can thrive under reflected policies and economic incentives. The focus is on creating a climate for innovation that doesn't solely concentrate on one technology, but instead energizes a host of feasible, environmentally-friendly transportation solutions.
By recognizing the significant role of travel centers, truck stops, convenience stores, and fuel marketers in this evolution, there can be a collaborative effort between the private and public sectors. Such partnerships are essential for the country's transition towards greener transportation options, and ultimately a testament to the industry's commitment to addressing climate change in a realistic and equitable manner.
In making these arguments, the industry representatives not only highlight the challenges but also present compelling solutions that deserve earnest consideration. The overtures to Congress and the Administration underscore the necessity for a supportive policy framework that adapts to the modern realities of fuel technology and the state of the electrical grid, all while maintaining a sustainable business model for those expected to invest in these new infrastructures.
In conclusion, as the United States positions itself as a global leader in the fight against climate change, the insights from fuel industry leaders offer valuable direction. Their advocacy for a diverse, technology-neutral, and market-oriented policy landscape could serve as a foundation for the future of low-emission transportation, guaranteeing that the goals of environmental stewardship and economic prosperity are not mutually exclusive, but rather, synergistically aligned for a greener tomorrow.
Fostering Collaboration for a Sustainable Future
The deliberations around the EPA's new vehicle emissions standards unfold against a backdrop of heightened awareness and urgency to address climate change. Industry stakeholders are calling for strategies that not only respond to environmental needs but also factor in economic realities and the dynamic nature of technology. The path forward, underscored by these industry giants, is a testament to the necessity of collaborative policymaking where innovation is encouraged and rewarded in step with its environmental impact.
The unwavering commitment of NATSO, NACS, and SIGMA to this cause is reflected in their ongoing discussions with policymakers and investment in green infrastructure. The fuel industry's voice is clear: it looks to a future where its role in environmental progress is recognized, and its contributions to technology are given the space to grow and prosper.
With the EPA’s Final Rule stirring up much-needed debate, the fuel industry's perspective remains an integral part of shaping America's approach to low-carbon transportation. It is their hope that by working closely with the Administration and Congress, a balanced, sustainable, and technologically inclusive future for American transportation can come to fruition.
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