Bankruptcy Judge Lets Refiner off the RFS Hook
by Kelsey Tamborrino (Politico’s Morning Energy) A Delaware Bankruptcy judge approved a consent decree between EPA and bankrupt refiner Philadelphia Energy Solutions, allowing PES to get out of much of its obligation under the Renewable Fuel Standard for 2016, 2017 and 2018. Growth Energy, which filed an objection with the court, was furious. “The EPA’s sue-and-settle-style settlement will give the Carlyle Group a free pass for skirting the law,” said Emily Skor, CEO of Growth Energy, in a statement.
NEW WAIVERS: EPA waived 25 small refineries from complying with the federal biofuel mandate last year, an agency spokeswoman told Pro’s Eric Wolff. The agency wouldn’t say which companies received the RFS waivers, but noted the criteria involved was not different from previous administrations. EIA data find there are 57 refineries that have a capacity under 75,000 barrels of crude a day – making them eligible for a potential waiver. Read more.
API not into the whole waiver thing: The American Petroleum Institute, which represents half of U.S. refining capacity along with the vertically integrated oil majors, told EPA in February it wants the agency to avoid use of the waivers, according to a copy of the letter obtained by ME. “As the size of a refinery alone does not determine operational competitiveness in the marketplace, it is not appropriate for EPA to grant small refiner exemptions to the RFS program,” API said in a letter to Assistant Administrator for Air Bill Wehrum. READ MORE
Philadelphia Energy Solutions gets court nod over RINs burden relief (Reuters)
Court Approval of PES’ Bankruptcy Settlement ‘Sets Bad Precedent’ Says RFA (Renewable Fuels Association)
Federal court approves Philadelphia Energy Solutions’ bankruptcy plan (Philadelphia Business Journal)
Court approves PES bankruptcy settlement (Ethanol Producer Magazine)
EPA-PES refiner settlement upsets biofuel groups (Feedstuffs)
Federal bankruptcy court approves biofuel quota relief for PES (Oil & Gas Journal)
Court Approves RINs Relief for Philadelphia Energy Solutions (Philadelphia Energy Solutions/Business Wire)
Daily on Energy: War heats up over ethanol (Washington Examiner)
