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News & Press: General

Advocacy in Action: Philadelphia Energy Solutions Settlement Approved

Friday, April 6, 2018   (0 Comments)
Posted by: Catie Scott
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Thank you members of M&SCA of Eastern PA  - Your Participation Made the Difference
 

 

As many of you may know, Southeastern PA refinery Philadelphia Energy Solutions (PES) has been at the forefront of the ongoing issue regarding the Renewable Fuel Standard's (RFS) RIN obligation. Merchant refiners like PES have continued to be adversely affected due to the ever-increasing costs of RIN credits, which were initially sold for a few cents but have since have skyrocketed to as high as $1.40 each.

In January of this year PES filed for bankruptcy, citing the RIN issue as the primary reason for the filing. Since 2012, the refinery has spent more than $800 million on credits to comply with the mandate, making it their largest expense after the purchase of crude.

A court hearing yesterday confirmed the settlement between Philadelphia Energy Solutions and the US Department of Justice on behalf of the Environmental Protection Agency to alleviate a portion of the RIN burden from 2017. This is a big victory and a crucial step in saving thousands of refinery jobs in our area. 

During the open comment period the DOJ received over 1,300 comments, an overwhelming number of which supported the settlement. We called on M&SCA of Eastern PA Contractors to participate in the open comment period and received a fantastic response from several members showing support for PES. This unified response is a perfect example of what our membership can do when we take action on issues affecting us on a local, state, or national level. Your voices make an enormous difference and your advocacy on behalf of our Association and the industry as a whole is invaluable.

See below for the full press release from PES regarding yesterday’s decision.

 

 

PHILADELPHIA, PA (April 4, 2018) ---Philadelphia Energy Solutions (“PES”) today issued the following statement regarding the outcome of today’s court hearing confirming the settlement reached with the United States Department of Justice on behalf of the Environmental Protection Agency.
 
“We are pleased with the Court’s decision today to approve the agreement to alleviate a portion of PES’s RINs burden from 2017, and appreciate the EPA’s and Department of Justice’s continued support for the settlement. This is another important milestone in our quest to strengthen our financial foundation and ensure that PES can successfully emerge from the restructuring process. We are grateful for our many advocates, including the City of Philadelphia, the Commonwealth of Pennsylvania, elected officials at all levels of government, the United Steelworkers and Building Trades, our valued employees, community, customers and suppliers for their unwavering support. During the comment period, the DOJ received over 1,300 comments, an overwhelming number of which supported the settlement. While this settlement is only a partial and temporary reprieve, we are hopeful that action will be taken by policymakers to address the flaws in the Renewable Fuel Standard program’s RIN compliance mechanism that adversely impacts independent refineries across the country.”
 
About Philadelphia Energy Solutions Refining & Marketing LLC
Philadelphia Energy Solutions (PESRM) owns and operates the Point Breeze and Girard Point oil refineries located on an integrated, 1,300 acre refining complex in Philadelphia. The 335,000 barrels per day of combined capacity makes PESRM the largest refining complex on the Eastern Seaboard.
 
PES Holdings
Cherice Corley, 215-339-7061



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