Insolvent US oil refiner seeks RFS waiver

Philadelphia Energy Solutions, one of the largest oil refiners in the eastern US, is trying to extricate itself from bankruptcy proceedings related to its biofuels obligations under the US Renewable Fuel Standard.

The refiner filed for bankruptcy on 22 January saying that it does not have enough cash to meet the requirements of the RFS for 2016 and 2017. 

The RFS requires refiners to either blend oil with renewable fuels or buy credits, a move that the refining industry says is a crushing financial burden that unfairly rewards the agribusiness and biofuels lobbies.  

CEO Greg Gatta said the company will "continue to work with the government to address the broken RFS system that is harming smaller, independent merchant refiners."

The company said that last year it spent about $218 million to meet the renewable fuel standard ­— double its payroll costs.

Reuters reported this week that around 25 small US refineries are seeking waivers from the RFS, as the oil industry steps up its resistance to the programme against the backdrop of negotiations between senators from corn-growing and oil producing states.