Changes Sought For RFS Compliance Mechanism

Source: By Politico Pro • Posted: Thursday, November 3, 2016

Rep. Bob Brady is going to press for changes in the Renewable Fuel Standard compliance mechanism that the refineries in his district say costs them millions — and he may try to enlist his old ally, Vice President Joe Biden. Stan White, the Philadelphia Democrat’s chief of staff, tells ME the current RFS point of obligation, requiring refiners to either blend ethanol into their gasoline or buy credits to comply with the mandate, threatens independent refiners.

Brady’s district includes the Philadelphia Refining Complex, which is jointly owned by Carlyle Group and Sunoco, and the congressman and his staff had heard from the United Steelworkers and the Steamfitters Union as well as the company, all of whom are concerned that compliance costs under the RFS would push them out of business. “It wasn’t that long ago we were faced with the prospect of the refineries shutting down and losing 1,000 good paying jobs that are not replaceable in our region,” White said.

In 2013, Brady lobbied Biden to ease requirements on the RFS to help save these refineries, as Reuters reported. EPA eventually ended up reducing mandatory ethanol volumes below those set by law. The issue of RFS compliance has split the refining industry, and GOP nominee Donald Trump also briefly took up the issue, aligning with his friend Carl Icahn, who has said the current requirements should be changed.