This case concerns the Title 11 bankruptcy of PES Holdings, LLC and associated debtors (PES) and the failure of Philadelphia Energy Solutions Refining and Marketing LLC to obtain and retire Renewable Identification Numbers (RINs) under the Clean Air Act Renewable Fuels Standard (RFS).
Philadelphia Energy Solutions and Marketing LLC (PESRM) operates two refineries in Philadelphia, Pennsylvania, where it produces a range of refined products, including transportation fuels that are subject to the Clean Air Act's (CAA) Renewable Fuel Standard (RFS). The refining complex has a combined distillation capacity of 335,000 barrels per day.
In June 2017, PES contacted the United States Environmental Protection Agency (EPA) with concerns about its ability to comply with the RFS due to the cost of purchasing renewable identification numbers (RINs) required for compliance.
On January 21, 2018, PES filed for bankruptcy under title 11.
As part of the settlement, PES will retire 138 million RINs and then will retire an additional 64.6 million RINs within 3 days after emerging from bankruptcy. The 64 million RINs will be applied towards PES' future compliance obligations.