Today, a federal Bankruptcy Court in Delaware approved the Environmental Protection Agency’s proposed settlement agreement with Philadelphia Energy Solutions (PES). The settlement agreement allows the bankrupt refiner to waive the vast majority—three-quarters—of PES’ Renewable Volume Obligations from January 2016-April 2018. Bob Dinneen, president and CEO of the Renewable Fuels Association, issued the following statement:
“It is frustrating to learn the court has approved a government-sponsored bailout for PES. There is absolutely no merit to what PES has brought forward. The notion that the refiner’s financial difficulties were in any way caused by the Renewable Fuel Standard is preposterous. The court has now essentially allowed PES to be let off the hook for three-quarters of its RVOs, while simultaneously carrying forward 64.6 million RINs to satisfy future 2018 RVO obligations.
“This decision simply sets bad precedent, signaling to others in the industry they can follow suit, thus allowing the agency to arbitrarily absolve an obligated party of its RVOs. This position is contradictory to the strong support President Trump has pledged for the RFS and to rural America. Today’s decision is a is a blow to the renewable fuels industry by eliminating demand and it is a loss for consumers across this country who have benefited from a strong RFS that has helped boost local economies.”