Grassley: RFS Has Minimal Impact on Success of Refineries
by Erin Voegele (Ethanol Producer Magazine) Sen. Chuck Grassley, R-Iowa, has released a memo produced by his energy policy staff that finds that Renewable Fuel Standard blending requirements and the cost of renewable identification numbers (RINs) have little to do with the success of refineries and were not factors in the Philadelphia Energy Solutions bankruptcy. Grassley’s analysis reached similar conclusions as those of multiple recent studies, including several by the University of Pennsylvania’s Kleinman Center for Energy Policy.
According to the analysis produced by Grassley’s staff, PES is in financial difficulty primarily due to changes in its available feedstock and other management decisions. “It does face a problem of having to acquire RINs to meet the looming RFS compliance deadline, but that is due in large measure to its reported decision last fall to sell off the RINs it had acquired, presumably in hopes of being able to buy them back at lower cost before the compliance deadline,” said Grassley’s staff in the memo. “Moreover, if PES had taken the sensible approach of other merchant refiners and invested in ethanol blending infrastructure or partnered with a blender, it appears it would have no need to purchase RINs at all.”
Grassley has said that it’s worth exploring ways to lower RIN prices without undermining the integrity of the RFS, has suggested making E15 available year-round, and noted that the EPA could do more to provide transparency in the RIN market.
Memo: Grassley Analysis Finds RFS Has Minimal Impact on Success of Refineries (Office of Senator Chuck Grassley (R-IA))
Grassley Releases RFS Memo–Memo: RFS Not to Blame for Refiner’s Woes (DTN The Progressive Farmer)
GRASSLEY ANALYSIS FINDS RFS HAS ‘MINIMAL IMPACT’ ON SUCCESS OF REFINERIES (Brownfield Ag News)