Barletta Applauds Step Forward in Providing Regulatory Relief for Pennsylvania Refineries
WASHINGTON – Congressman Lou Barletta (PA-11) issued the following statement regarding a deal brokered by President Donald J. Trump that addresses the ever-changing pricing of Renewable Identification Numbers (RINs) under the Renewable Fuel Standard (RFS):
“I am encouraged by what I have heard about yesterday’s meeting at the White House to address the flawed RINs system,” Barletta said. “I applaud the White House for their continued commitment to protecting good-paying, family-sustaining jobs at Pennsylvania’s refineries, and believe that allowing for new RINs to be generated from all ethanol exports will do just that. I will be closely monitoring this deal as the details are finalized to ensure a solution that protects the jobs of hardworking Pennsylvanians.”
The RFS program was created in 2005 in an attempt to reduce greenhouse gas emissions and expand the nation’s renewable fuels sector while reducing reliance on imported oil. It does so by mandating the use of ethanol in our nation’s fuel supply. RINs are necessary to demonstrate compliance with this mandate. When instituted, RINs were not expected to cost more than three cents per credit, but have since skyrocketed to $1.40 each, which is more than most merchant refineries can afford. For example, in 2010, PES, a Pennsylvania based refinery, paid $10 million in RINs regulatory costs. In 2017, that figure jumped to $218 million, which is double their payroll. Earlier this year, they were forced to file for bankruptcy, putting thousands of jobs at risk.