The Trump EPA previously waived $350 million in biofuels compliance costs for PES after its initial bankruptcy in 2018.
As reported in Jan., Philadelphia-headquartered bioenergy developer SG Preston dropped its previously expressed interest in redeveloping the shut-down fire-damaged 335,000 bpd Philadelphia refinery, which is now being sold by creditors for $252 million and redeveloped under a bankruptcy court approved plan. (Source: Various Media,Reuters, May, 2020)
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The company's industrial site conversions will focus on re-developing these sites to produce renewable fuels and clean power, while also partnering with institutions with a track record of actively, and diligently remediating the environmental contamination of the sites, according to the company's website.
SG Preston's strategic goal is to develop 1.2 billion gallons of renewable biofuels to help major stakeholders in the transportation, aviation jet fuel and related industries meet their strategic goals, according to its website.
S.G. Preston earlier unveiled plans to buy the PES plant and to
(Source: SG Preston Website, Jan., 2020) Contact: SG Preston, Randy LeTang, CEO, (215) 278-6001, (215) 734-2401 – fax, www.sgpreston.com
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RNG is currently developing similar energy systems in Seattle, Boston and New Jersey.
(Source: RNG Energy Solutions, The Philadelphia Inquirer, 21 Sept., 2018)
Contact: RNG Energy Solutions LLC, Jim Potter, Pres., email@example.com, www.rngenergysolutions.com;
Philadelphia Energy Solutions, www.pes-companies.com
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The Andeavor announcement late on Monday came after Reuters reported last month that the EPA granted the company a "financial hardship waiver" that freed its smallest refining facilities from the regulation. Andeavor recorded net profits of $1.4 billion in 2017.
Andeavor's EPA hardship exemptions freed the company's refineries in North Dakota, Utah and New Mexico from having to blend biofuels or purchase RINs for the 2016 compliance period.
The company did not explicitly credit small refinery exemptions for the savings, according to the Reuters report. (Source: Andeavor, Reuters, 8 May, 2018) Contact: Andeavor, (210) 626-6000, www.andeavor.com; Philadelphia Energy Solutions, [endlink]www.pes-companies.com[endlink]
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As previously noted, "hardship waivers" were intended for refineries producing less than 75,000 bpd and suffering "disproportionate economic hardship" from the costs of RFS compliance. The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. (Source: WHTC Radio, Reuters, 3 April, 2018) Contact: Andeavor, (210) 626-6000, www.andeavor.com; Philadelphia Energy Solutions, www.pes-companies.com
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"Several media reports over the past week have confirmed the fears we voiced in January about EPA's expansive and abusive administration of the small refiner exemption provision," said RFA President and CEO Bob Dinneen. 'One article even quoted a refining executive as saying EPA is 'handing out those exemptions is like trick or treat candy.' EPA's unbelievable issuance of secret compliance bailouts to refining giants like Andeavor goes far beyond the pale and stomps all over President Trump's commitment to protect the RFS and support America's family farmers, whom he called 'the backbone of our nation.' Combined with the free pass EPA handed out this week to Philadelphia Energy Solutions (PES) and the Agency's refusal to enforce the 2016 RFS requirements as remanded by the courts, these subversive actions are literally destroying demand for both ethanol and corn.
"EPA's secretive actions are having real impacts on the marketplace. Every new revelation about EPA's latest handout or kickback to refiners serves as yet another gut punch to markets that are already reeling from the impacts of new Chinese tariffs. Make no mistake, EPA's underhanded refinery waivers are negatively affecting the welfare of our nation's ethanol producers and the very livelihood of America's family farms. At the very least, they deserve some answers about EPA's cloak-and-dagger decision-making process on small refiner exemption petitions."
(Source: Renewable Fuels Assoc., 5 April, 2018) Contact: RFA, Bob Dinneen, Pres., (202) 289-3835, www.ethanolrfa.org
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As previously reported, "hardship waivers" were intended for refineries producing 75,000 bpd or less and suffered "disproportionate economic hardship" from the costs of RFS compliance.
The waiver frees the refineries from an obligation to provide the EPA with biofuels credits proving compliance. (Source: WHTC Radio, Reuters,3 April, 2018)
Contact: Andeavor, (210) 626-6000, www.andeavor.com; Philadelphia Energy Solutions, www.pes-companies.com
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"NCGA claims the settlement would undermine the RFS and allow the refiner 'to walk away' from more than half of its outstanding RFS obligations and allow its parent companies to avoid liability." According to NCGA President Kevin Skunes, the proposal "would have negative policy implications for the RFS and future compliance with the Clean Air Act, as the settlement does not hold all parties liable for violations of the Clean Air Act."
(Source: NCGA, Neb. Rural Radio, Others, 29 Mar., 2018) Contact: NCGA, Kevin Skunes, Pres., (202) 326-0644, www.ncga.com; Philadelphia Energy Solutions, www.pes-companies.com
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"While PES continues to blame the RFS for its woes, the fact is, the bankruptcy is a mess of its own making," said Kurt Kovarik, NBB's VP of Federal Affairs. "Poor management and a failure to respond to changes in the crude oil market is to blame. PES should not be rewarded for deliberately failing to comply with the decade-old Renewable Fuel Standard. Doing so is akin to rewarding a toddler in the midst of a temper tantrum. Instead, the government should hold PES to the same renewable volume obligation as all other refiners. Not doing so could severely hinder the RFS's goals of enhancing energy security, protecting the environment and building our nation’s rural economy."
NBB highlighted two key components in comments to the DOJ submitted March 26. First, the RFS holds parent companies liable for the compliance obligations of their subsidiaries. Thus, PES's corporate parents Carlyle and Sunoco can be required to comply with the RFS obligations incurred by PES. EPA has not explained why it is abandoning that avenue for ensuring complete fulfillment of PES's obligations. Second, the renewable volume obligations (RVOs) under the RFS cannot be discharged in bankruptcy. The RFS creates an affirmative duty for obligated parties to blend or use biofuels or to buy credits from others who have done so. Such a duty persists through the bankruptcy because it cannot be resolved by a payment to the government.
(Source: National Biodiesel Board, 27 Mar., 2018)
Contact: National Biodiesel Board, Kurt Kovarik, VP of Federal Affairs, 800) 841-5849, www.biodiesel.org; Philadelphia Energy Solutions, www.pes-companies.com
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Under the new agreement, the South Philadelphia-based refiner will retire 138 million RINs before April 1, when it plans to emerge from bankruptcy, and another 64.6 million of the credits after that date.
Although the price of RINs has been as high as $1.45, it has dropped to about $0.35 its lowest in a year.
PES claimed has been paying $75-85 million a year for RINs since 2014, and the cost is now the second-biggest after crude oil.
(Source: State Impact Pennsylvania, Law360, Various Media, 13 Mar., 2018)Contact: Philadelphia Energy Solutions, www.pes-companies.com
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