Biofuel industry hits back at proposed PES RIN compliance bailout

March 27, 2018 |

In Washington, unsurprisingly the biofuels industry has overwhelmingly come out in opposition of the Environmental Protection Agency and Department of Justice’s proposed deal with Philadelphia Energy Solutions to offer a bail out on its RIN compliance. The National Biodiesel Board called on the DOJ to reconsider its proposed settlement allowing PES Holdings to escape the vast majority of its 2016-’17 obligations under the Renewable Fuel Standard. The proposed settlement would harm the renewable fuels industry and undermine the intent of the RFS program by excusing more than 70 percent of the company’s compliance obligations for the two-year period. The proposed PES settlement agreement, which covers the refiner’s RVOs for January 2016-April 2018, should be rejected “because the terms are patently unfair, unreasonable, and inconsistent with the purposes of the RFS program,” the Renewable Fuels Association wrote. The U.S. Bankruptcy Court of Delaware has to approve PES’ proposed settlement agreement on April 4. The Biotechnology Innovation Organization said, “Philadelphia Energy Solutions’ claim to the bankruptcy court that the Renewable Fuel Standard program caused its financial difficulties is specious at best. The record shows that the refiner ignored its RFS compliance obligations and sold renewable fuel credits for profit, in order to pay unearned dividends to its Wall Street shareholders. This proposed settlement agreement undermines the goals of the RFS by allowing the refiner to profit by escaping its obligations under the law.

https://www.businesswire.com/news/home/20180326006078/en/BIO-Comments-DOJ%E2%80%99s-Environmental-Settlement-Agreement-Philadelphia

RFA Opposes Proposed PES Settlement; Would Allow Refiner ‘to Have its Cake and Sell it Too’

Category: Policy

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