WASHINGTON — On Tuesday, a group of legislators, including Sen. Bob Casey, D-Pa., introduced the Safeguarding Domestic Energy Production & Independence Act to bring down rising compliance costs associated with the Renewable Fuel Standard and ensure our nation’s independent refiners can afford to continue production.
Casey was joined by Sen. Chris Coons, D-Del., and Representatives Brian Fitzpatrick, R-Pa., Donald Norcross, D-N.J., Mary Gay Scanlon, D-Pa., and Brendan Boyle, D-Pa.
This legislation will protect the jobs of refinery workers while also creating a new revenue stream that would fund investments in conservation, agricultural production, and advanced biofuel development.
“The skyrocketing price of RFS compliance is threatening our nation’s refining capacity and the futures of thousands of skilled union workers and their families across the Northeast,” Casey said. “The Safeguarding Domestic Energy Production & Independence Act will provide certainty and predictability for the workers at merchant refineries like the Monroe Energy Refinery in Marcus Hook, all while supporting the transition to renewable fuels.”
To comply, refineries are required to purchase renewable identification numbers — RINs — at high and unpredictable prices.
Coons said the RFS program creates uncertainty and high compliance costs for small refineries, mentioning the Delaware City Refinery. American Refining Group in Bradford is impacted by the program as well, and has petitioned in the past for waivers for relief.
“We can and must do more to address volatile and soaring compliance costs driven by fuel mandates that are out of step with domestic fuel demand,” Coons said. “I’m proud to join my colleagues on this legislation to provide certainty and stability for small refineries and the good-paying union jobs they create.”
Norcross spoke about his prior job as a union electrician, where he installed “transmission cables at refineries along the Delaware River.”
He understands that refineries are critical.
“While I support the intention for RINs to be an eco-friendly policy that facilitates the transition to renewable fuels, the outdated RIN system isn’t working,” Norcross said. “This arbitrary system has led to sky-high compliance costs that threaten our economy, national security, and union workers at these refineries. That’s why I’m introducing this legislation to control the volatility of the RINs market, strengthen our energy security, and provide certainty for our economy and workforce as we transition to a greener energy sector.”
Congressman Fitzpatrick agreed.
“In the midst of market uncertainty and fluctuating fuel costs, Congress has a responsibility to provide American workers and refineries with greater predictability,” he said. “Our bipartisan bill ensures market stability by requiring the issuance of renewable fuel credits at a lower and fixed price, as well as invests in innovations in biofuels and environmental conservation”
Scanlon said the measure is a critical step.
“America must invest in an independent and sustainable energy future in order to ensure market stability and curb the worst impacts of climate change,” she said. “By updating the Renewable Fuel Standard (RFS) — a decades-old program vital to reducing carbon dioxide emissions — this bill creates new revenue streams that support conservation and low-carbon energies while stabilizing an industry that employs thousands of union workers in our region.”
Boyle agreed that this is a crucial step in addressing compliance costs.
“These costs pose a threat to the livelihoods of thousands of skilled laborers in our region,” he said. “This legislation will help union workers by ensuring renewable fuel credits are issued at a lower, fixed cost for compliance, creating a new source of revenue to fund critical activities in this field.”
The Renewable Fuel Standard was created to reduce greenhouse gas emissions and expand the United States’s renewable fuels sector while reducing reliance on imported oil. In order to comply with the RFS, refiners must submit credits known as Renewable Identification Numbers (RINs), which in recent years have sharply risen in price. As compliance costs have surged, many refiners are now spending more on RINs than all other operating costs combined, putting their long-term viability at risk.
The Safeguarding Domestic Energy Production & Independence Act will reduce the cost of the RFS without adversely impacting ethanol consumption. Specifically, this bill would direct the Environmental Protection Agency (EPA) to issue and sell “conventional biofuel waiver credits” at a low, fixed price for refiners to use for RFS compliance if they are unable to obtain RINs cost effectively in the marketplace. The program would operate similarly to EPA’s waiver credit program for cellulosic biofuel.
