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EPA proposal reduces RFS requirements for oil refiner
Biofuel groups are concerned about the EPA’s proposal to reduce the number of biofuel credits that bankrupt oil refiner Philadelphia Energy Solutions (PES) must buy under the Renewable Fuel Standard.
Renewable Fuels Association President and CEO Bob Dinneen says the decision is setting a bad precedent and could encourage others to manipulate the process to get out of obligations.
“It’s not just the RFS, it’s potentially other fuel regulations like reformulated gasoline, benzene, air toxics, detergents, vapor pressure, diesel, and sulfur content,” he says. “All contain a similar liability regimen to insure environmental goals are satisfied and with what the EPA has done, it puts all of those equally at risk.”
The EPA’s proposed settlement says the East Coast oil refiner is charged with retiring 138 million Renewable Identification Numbers (RINs).
Philadelphia Energy Solutions blames the high cost of RINs for its financial problems. Ethanol supporters have disputed that claim.
Growth Energy CEO Emily Skor says the Carlyle Group backed-refiner should not get a free pass. She says the investment firm pulled hundreds of millions of dollars out of PES and hurt workers and long-term biofuel investments that have allowed other refiners to thrive under the RFS.
The settlement is for public comment for 10 days.
Audio: Bob Dinneen, Renewable Fuels Association
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The market for RINs is not transparent, and the run up in prices, without any corresponding economic rationale for it, makes clear that RIN prices are being manipulated. Regulating RIN prices and allowing an RVP waiver to let E15 be sold year round is a reasonable compromise, but the RFA and other RFS supporter groups seem to be willing to offer no compromise. The outcome, then, is clear: RIN prices will end up being capped, but nothing will be received in return. The attitude of the RFA is the rea, danger to the continued existence of the RFS. I hope they wake up.
Philadelphia Energy Solutions is blaming ethanol for their poor management and obviously do not care about added pollution or the environment when they only want the public to burn fossil fuels. They should not get a free pass!