Fight Over Ethanol Escalates as Bankruptcy Refuels Debate
- Lawmakers argue over credit costs, USDA appointment in Senate
- Philadelphia refinery bankruptcy latest front in ethanol wars
The Philadelphia Energy Solutions LLC refinery in Philadelphia, Pennsylvania.
Photographer: Michelle Gustafson/BloombergThis article is for subscribers only.
The battle between U.S. farm interests and oil-refining advocates such as Carl Icahn is heating up again as the two sides fight over whether the ethanol mandate is to blame for the bankruptcy of the U.S. East Coast’s largest refinery.
Philadelphia Energy Solutions LLC blamed its woes on the cost of complying with the Renewable Fuel Standard when it filed for bankruptcy last month. The refiner said the biofuel mandate cost it more than $800 million since 2012, and now the industry is seizing on that as fresh evidence that changes to the regulation are urgently needed.