Philadelphia Energy Solutions
Date: 2020-05-11
The Trump administration has offered to place a $10 million cap on bankrupt Philadelphia Energy Solutions' biofuel blending obligations, effectively cutting the refiner's regulatory liability by more than 70 pct and freeing more cash for the company's creditors. Under the deal PES will either surrender 161.8 million biofuel blending credits (RINs) valued at roughly $35 million or pay up to $10 million to meet its RFS obligations, according to Reuters.

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)

More Low-Carbon Energy News Philadelphia Energy Solutions,  RFS,  Biofuel Blend,  RINs,  

SG Preston,Philadelphia Energy Solutions
Date: 2020-01-22
In the Keystone State, Philadelphia-headquartered bioenergy developer SG Preston reports it intends to apply its expertise in partnership with leading environmental sustainability investment initiatives to target and convert large-scale industrial sites occupied by traditional industries such as coal power and petroleum refining -- the fire-damaged Philadelphia Energy Solutions (PES) refinery being an example although Reuters has reported SG Prestion is not now pursuing that opportunity despite its reported previous interest.

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

More Low-Carbon Energy News SG Preston,  Biofuel,  Ethanol,  Philadelphia Energy Solutions,  

RNG Energy Solutions,Philadelphia Energy Solutions
Date: 2018-09-24
As previously reported by the Philadelphia Inquirer, renewable methane producer RNG Energy Solutions LLC reports it has formed a joint venture with Philadelphia Energy Solutions to construct the $120 million Point Breeze Renewable Energy anaerobic digestion project to covert food waste into approximately 3 million cubic feet per day of methane gas. The project is expected to be completed in two to three years.

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., jim.potter@rngenergysolutions.com, www.rngenergysolutions.com; Philadelphia Energy Solutions, www.pes-companies.com

More Low-Carbon Energy News Methane,  RNG Energy,  anaerobic digestion,  Philadelphia Energy Solutions ,  

Andeavor,Philadelphia Energy Solutions
Date: 2018-05-09
Following on our coverage of Philadelphia Energy Solutions bankruptcy, the company's owner, Andeavor, one of the largest U.S. refining companies has reported saving approximately $100 million over the past two years primarily due to a reduction in the RINs obligation for the 2016 and 2017 compliance periods for some of the company's inland refineries.

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]

More Low-Carbon Energy News Andeavor,  RFS,  Philadelphia Energy Solutions,  

RFS,ANdeavor
Date: 2018-04-06
Following up on the widely reported US EPA's granting Renewable Fuels Standard (RFS) "extreme hardship" waivers to the recently bankrupt Philadelphia Energy Solutions (PES Solutions) refinery, it is interesting to note that of the total 141 operating gasoline refineries in the US (EIA Jan. 2017 data) 25 have received "extreme hardship" waivers, including 3 smaller unites of one of the nation's largest oil refining companies Andeavor -- fka Tesoro Corporation -- which reportedly earned net profits of about $1.5 billion in 2017, according to Reuters coverage. So where's the "extreme hardship"?

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

More Low-Carbon Energy News Andeavor,  RFS,  Philadelphia Energy Solutions,  Andeover,  

Renewable Fuels Association,RFS
Date: 2018-04-06
The Renewable Fuels Association (RFA) reports it has submitted Freedom of Information Act (FOIA)requests to both the U.S. EPA and the DOE seeking more information and transparency regarding the recent issuance of Renewable Fuel Standard (RFS) compliance exemptions to dozens of oil refineries. The FOIA request follows a January letter to EPA in which RFA asked for data and documents regarding small refiner exemptions and called for more openness and transparency in the Agency's process to consider exemption requests. EPA never responded to the January letter.

"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

More Low-Carbon Energy News RFS,  Renewable Fuels Association,  

Andeavor,RFS
Date: 2018-04-04
Following on the heels of the EPA's exempting bankrupt Philadelphia Energy Solutions (PES) from compliance with U.S. Renewable Fuels Standard biofuels blending regulations, San Antonio-based Andeavor, one of the nation's largest oil refining companies, has reportedly been issued a similar "hardship waiver" for three of its 10 refineries. Andeavor -- fka Tesoro Corporation -- is reported to have earned net profits of about $1.5 billion in 2017, according to Reuters coverage.

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

More Low-Carbon Energy News RFS,  RINs,  Biofuel Blend,  Point of Obligation,  Philadelphia Energy Solutions,  RFS,  EPA,  

National Corn Growers Association,Philadelphia Energy Solutions
Date: 2018-03-30
The National Corn Growers Association (NCGA) this week submitted formal comments to the U.S. Department of Justice on the proposed settlement agreement between Philadelphia Energy Solutions (PES) and the US EPA. The settlement stems from the outstanding RFS compliance obligations the refiner has included in its Chapter 11 bankruptcy filing.

"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

More Low-Carbon Energy News National Corn Growers Association,  RFS,  Philadelphia Energy Solutions,  

National Biodiesel Board
Date: 2018-03-28
The National Biodiesel Board (NBB) called on the Department of Justice to reconsider its proposed settlement allowing Philadelphi Energy Solutions (PES) to escape the vast majority of its 2016-17 obligations under the Renewable Fuel Standard (RFS). According to NBB, the proposed settlement would harm the renewable fuels industry and undermine the intent of the RFS program by excusing more than 70 pct of the company's compliance obligations for the two-year period.

"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

More Low-Carbon Energy News National Biodiesel Board,  PES,  Point of Obligation,  RFS,  Biofuel Blend,  NBB,  RFS,  

Philadelphia Energy Solutions
Date: 2018-03-16
Further to our 2nd February coverage, Philadelphia Energy Solutions LLC caught a break in its Delaware bankruptcy proceedings Monday when it reached an agreement with the federal government to reduce its liability for buying Renewable Identification Numbers (RINs) credits as required by the EPA Renewable Fuels Standard (RFS). In its January bankruptcy filing, PES said compliance with the RFS program was the "primary driver" behind its decision to seek Chapter 11 protection.

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

More Low-Carbon Energy News Philadelphia Energy Solutions,  Renewable Fuel Standard,  RFS,  

Philadelphia Energy Solutions, EPA
Date: 2018-02-02
Following up on our 24 January coverage, Reuters is reporting the US EPA has agreed to extend the deadline for Philadelphia Energy Solutions (PES) to comply with its biofuel credit obligation to May 1, according to a bankruptcy filing.

As previously reported, PES' plan to exit it Chapter 11 bankruptcy is dependent upon its shedding existing biofuel "point-of-obligation" biofuel blending costs under the US DOE Renewable Fuels Standard. The company claims its 2016-17 biofuels obligation totaled $185 million, and the cost of RINs in 2017 alone was $218 million, according to Reuters. (Source: PES, Reuters, Various Media, Feb., 2018) Contact: Philadelphia Energy Solutions, www.pes-companies.com

More Low-Carbon Energy News RFS,  Point-of-Obligation,  RINs,  Ethanol,  Ethanol BlendPhiladelphia Energy Solutions,  RFS,  Point of Obligation,  EPA,  

Philadelphia Energy Solutions
Date: 2018-01-24
Philadelphia Energy Solutions, owner of the largest U.S. East Coast refinery, reports its plan to exit it Chapter 11 bankruptcy is dependent upon its shedding existing biofuel "point-of-obligation" biofuel blending costs under the US DOE Renewable Fuels Standard. The company also plans to sell $150 million worth of credits to help emerge from bankruptcy, according to Reuters.

PES claims its 2016-17 biofuels obligation totaled $185 million, and the cost of RINs in 2017 alone was $218 million, according to Reuters.

In its bankruptcy filing on Monday, the company said it does not have enough cash to comply with the laws for 2016 and 2017. (Source: Reuters, Philadelphia Energy Solutions, Various Media, 23 Jan., 2018) Contact: Philadelphia Energy Solutions, www.pes-companies.com

More Low-Carbon Energy News RFS,  Biofuel Blending,  Point of Origin,