WASHINGTON, D.C. — On Wednesday, U.S. Senator Bob Casey (D-PA) called for legislative action to protect refinery jobs and energy security in the United States. Leading a bipartisan group of colleagues, Casey urged the Senate and House committees to take up the Safeguarding Domestic Energy Production and Independence Act. The proposed legislation aims to reduce the high compliance costs associated with the Renewable Fuel Standard (RFS) and ensure that Pennsylvania’s independent oil refineries can continue their operations.
“Refineries in the Philadelphia region—including the Monroe refinery in Trainer, Pennsylvania, and PBF refineries in Delaware City, Delaware, and Paulsboro, New Jersey—are struggling under the heavy burden of RINs compliance and costs,” the Members wrote. “Collectively, these refiners directly employ thousands of hardworking men and women in our energy industry and support the employment of tens of thousands more through the supply chain.”
Understanding the Renewable Fuel Standard
The Renewable Fuel Standard was established to reduce greenhouse gas emissions, expand the U.S. renewable fuel sector, and decrease reliance on imported oil. To comply with RFS, refiners must purchase credits known as Renewable Identification Numbers (RINs), which have seen a sharp increase in price in recent years. Large oil corporations can produce RIN credits on a massive scale, but medium and independent refineries must buy these credits, often at prohibitive costs.
Legislative Proposal
The Safeguarding Domestic Energy Production and Independence Act proposes a solution to this issue. The bill would direct the Environmental Protection Agency (EPA) to issue and sell “conventional biofuel waiver credits” at a low, fixed price. This measure would provide relief to refiners who cannot obtain RINs cost-effectively. The system would operate similarly to EPA’s existing waiver credit program for cellulosic biofuel.
Implications for Jobs and Energy Security
The high costs and volatility of RIN credits threaten the viability of independent refineries. These refineries are crucial for the local economy, providing good-paying union jobs and supporting the nation’s energy infrastructure. The proposed bill aims to stabilize the cost structure, allowing these refineries to remain operational and continue their contributions to energy security.
Bipartisan Support
Senator Casey’s call to action has garnered bipartisan support. The letter was signed by U.S. Senators Chris Coons (D-DE), Cory Booker (D-NJ), John Fetterman (D-PA), and U.S. Representatives Chrissy Houlahan (D-PA-6), Donald Norcross (D-NJ-1), Brian Fitzpatrick (R-PA-1), Jim Costa (D-CA-21), Michael Lawler (R-NY-17), Mary Gay Scanlon (D-PA-5), and Lisa Blunt Rochester (D-DE-At-large District).
Empowering Energy Independence
The Safeguarding Domestic Energy Production and Independence Act represents a targeted effort to address the economic challenges faced by independent refiners due to the current RFS structure. By offering a more stable and affordable compliance path, the legislation aims to protect jobs, promote energy security, and support the transition to renewable fuels. As the bill moves forward, it holds the potential to significantly impact the energy sector and the livelihoods of thousands of workers.
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