U.S. Sen. Bob Casey (D-PA), along with U.S. Reps. Brian Fitzpatrick (R-PA), Brendan Boyle (D-PA) and Mark Kay Scanlon (D-PA), are among a group of lawmakers sponsoring a bill that seeks to reduce compliance costs associated with the Renewable Fuel Standard (RFS).
The RFS was created to reduce greenhouse gas emissions and expand the nation’s renewable fuels sector. To comply with the RFS, refiners must submit credits known as Renewable Identification Numbers (RINs). However, in recent years, RINs have sharply risen in price. Now, many refiners are now spending more on RINs than all other operating costs combined.
The Safeguarding Domestic Energy Production & Independence Act will reduce the cost of the RFS without impacting ethanol consumption. It would direct the Environmental Protection Agency (EPA) to sell “conventional biofuel waiver credits” at a low, fixed price for refiners to use for RFS compliance if needed, operating similarly to EPA’s waiver credit program for cellulosic biofuel.
“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.”
A conventional biofuel waiver credit would create a new revenue stream that would be directed towards grants and technical assistance for petroleum refiners; financial and technical assistance for agricultural producers; and conservation funding to support wildlife and habitat restoration.
“In the midst of market uncertainty and fluctuating fuel costs, Congress has a responsibility to provide American workers and refineries with greater predictability,” Fitzpatrick 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.”
The bill is endorsed by several local groups including the PA Chamber of Commerce, Pennsylvania Manufacturers’ Association, Philadelphia Building and Construction Trades, Philaport, Pittsburgh Area Airport Chamber of Commerce, Chamber of Commerce for Greater Philadelphia, and the United Steelworkers International.
“This bipartisan, bicameral legislation is a crucial step in addressing Renewable Fuel Standard compliance costs,” Boyle said. “These costs pose a threat to the livelihoods of thousands of skilled laborers in our region. 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 bill is also sponsored by U.S. Sen. Chris Coons (D-DE) and U.S. Rep. Donald Norcross (D-NJ).
“America must invest in an independent and sustainable energy future in order to ensure market stability and curb the worst impacts of climate change,” Scanlon 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.”