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Senator Ted Cruz Visits Philadelphia Energy Solutions & Speaks on the Renewable Fuel Standard

Thursday, February 22, 2018   (0 Comments)
Posted by: Catie Scott
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On Wednesday, February 21, 2018, Senator Ted Cruz (R-TX) visited Southeastern Pennsylvania refinery Philadelphia Energy Solutions.  At a rally with over 1200 refinery workers, contractors, and union representatives present, the Senator spoke on the issue of the Renewable Fuel Standard the skyrocketing RIN prices.  

Left to right: Jim Gallagher (Business Agent, Steamfitters 420), Tim Brink (Executive VP, M&SCA of Eastern PA), Senator Ted Cruz (R-TX), Anthony Gallagher (Business Manager, Steamfitters 420)

The potential loss of jobs was highlighted frequently in the Senator’s speech: "When RINs were first introduced, they were sold at a 'low cost' for a penny or two pennies each. But now, RINs have skyrocketed to as high as $1.40 each. This $1.40 may not sound like much, but it has literally put thousands upon thousands of blue-collar jobs at risk.Senator Cruz, along with our own Senator from Pennsylvania Pat Toomey, has met with President Trump on this important issue, which affects independent merchant refiners around the country.  Most of these refiners have little or no blending capability and are required to purchase RINs because they are unable to meet the obligation, which requires them to meet certain individual Renewable Fuel Standard quotas based on the volume of fuel they introduce into the market.  The ever-increasing cost of this is putting an unnecessary financial burden on refineries that provide thousands of jobs to areas like Southeastern Pennsylvania and Cruz’s home state of Texas.  

Philadelphia Energy Solutions is the largest refinery complex on the East Coast, with a capacity of 335,000 barrels of crude oil per day and 1,100 workers. During Cruz’s remarks he cited that a mere 10 years ago, PES spent just $10 million complying with the Renewable Fuel Standard. Due to increased RIN prices since then, the company spent nearly $218 million last year alone. Cruz has proposed capping the price at 10 cents.  

Additional actions have been taken in past months to remedy this issue. Governor Tom Wolf, along with 2 other governors from affected states, has requested a waiver for the refineries. Senator Toomey signed a bipartisan letter to President Trump requesting a meeting and urging him to address the issue. UA General President Mark McManus wrote a letter to the EPA regarding the mandate in early 2017, encouraging them to move the point of obligation to the fuel retailers. And finally, the M&SCA of Eastern PA penned a letter urging action and citing the affects on the Philadelphia region specifically.

Click here to view the full video from the Philadelphia Energy Solutions event with Senator Ted Cruz.

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