In January MDN brought you the sad news that the Philadelphia Energy Solutions (PES), which operates the East Coast’s largest refinery on the banks of the Delaware River, had filed for Chapter 11 bankruptcy (see Philadelphia Refinery Files for Chapter 11 Bankruptcy). PES’ stated reason for bankruptcy is due to an onerous EPA requirement that refiners must blend in biofuel with gasoline and diesel, or purchase very expensive credits. PES can’t blend, so they must buy the credits, and buying the credits put them under water financially. Sadly, the Trump administration caved to the Midwest corn growers lobby and decided to uphold the Obama EPA’s onerous requirement to buy credits. But what’s this? Following withering criticism of the EPA, and visits to PES from luminaries like U.S. Sen. Ted Cruz, the EPA has had a change of heart. The EPA has asked the bankruptcy court judge to waive $350 million PES owes for the credits (about half of the total bill). Will it be enough to save PES?…
