Rep. Barletta and Sen. Cruz Address Refinery Concerns at the U.S. Capitol

Press Release

Congressman Lou Barletta (PA-11) and Senator Ted Cruz (TX) today joined refinery workers at a rally in front of the U.S. Capitol to address growing concerns about the ever-changing pricing of Renewable Identification Numbers (RINs) under the Renewable Fuel Standard (RFS). RINs are used to determine compliance with the RFS.

"In Pennsylvania, we saw what extreme government regulation did to our steel mills -- jobs were lost and communities were destroyed," Barletta said. "Today, we showed the country just how important fixing the broken RINs system is for American jobs and for our nation's economy. Refineries like PES, Monroe, PBF, and Valero directly and indirectly support more than 30,000 jobs -- the type of good-paying, family-sustaining jobs that Senator Cruz and I are dedicated to protecting. We will not stop fighting until there is a solution on the table that provides price certainty for our refineries."

"There are tens of thousands of jobs on the East Coast, across the country, and in my home state of Texas that depend on standing up and defending blue collar working men and women and union members," Senator Cruz said. "I'm proud to stand with the steelworkers who are here today. I'm proud to stand with the working men and women of this country. And I am encouraged that as we stand together, the President is going to hear and respond to the cry of the men and women who stood with him and stop a broken regulatory system from taking their jobs."

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.

Source