EPA and RFS to be tested by potential refinery bankruptcy

January 21, 2018 |

In Pennsylvania, the potential bankruptcy of Philadelphia Energy Solutions refinery could test the RFS by seeing if the U.S. government can collect biofuels related debt from a company in pain. As the oldest and largest refiner on the East Coast, Philadelphia Energy Solutions likely is carrying a shortfall of RFS credits worth over $100 million, has a short-term loan worth $550 million due soon in March, and its management is considering filing for bankruptcy, according to Reuters.

An EPA official did not say if the agency would pursue the credits, and told Reuters that “EPA cannot comment on potential future bankruptcy proceedings.”

Robin Phelan, a veteran bankruptcy attorney and head of Dallas-based Phelan Law told Reuters that the EPA “would be legally permitted to pursue the claim in court but which has in the past shown flexibility in collecting from distressed companies.”

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Category: Policy

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