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Skunes says forgiving RFS obligations a ‘dangerous precedent’

National Corn Growers Association President Kevin Skunes calls it a “dangerous precedent” for a bankruptcy court to allow Philadelphia Energy Solutions to walk away from more than half its RFS obligations.  The refiner earlier blamed the cost of Renewable Identification Numbers as the reason for its insolvency, but Skunes maintains that RINs and the Renewable Fuel Standard are not to blame.

“If the refineries would have gone by the law and invested in blending infrastructure, they could have blended ethanol into their fuel stock,” Skunes told Brownfield Ag News Wednesday, “and the RINs that come with a gallon of ethanol would have been absolutely free to turn in to the EPA to meet their obligations.”

Skunes says the NCGA has a vested interest in the integrity of the RFS and the RINs compliance system.  He says the settlement would have negative policy implications for the RFS and future compliance with the Clean Air Act.  In formal comments to the U.S. Justice Department, the NCGA says it opposes the proposed settlement with the EPA forgiving most of the refiner’s outstanding RFS obligations.

The bankruptcy court approved Philadelphia Energy’s overall Chapter 11 bankruptcy reorganization plan this week but will decide on the specific settlement agreement next Wednesday.

AUDIO: Kevin Skunes (4 min. MP3)

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