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File #: 180266    Version: 0 Name:
Type: Resolution Status: ADOPTED
File created: 3/22/2018 In control: CITY COUNCIL
On agenda: Final action: 3/22/2018
Title: Supporting the Settlement Agreement reached between the United States Department of Justice on behalf of the Environmental Protection Agency and Philadelphia Energy Solutions.
Sponsors: Councilmember Henon, Councilmember Taubenberger, Councilmember Greenlee, Councilmember O'Neill, Councilmember Oh, Councilmember Reynolds Brown
Attachments: 1. Signature18026600.pdf
Title
Supporting the Settlement Agreement reached between the United States Department of Justice on behalf of the Environmental Protection Agency and Philadelphia Energy Solutions.

Body
WHEREAS, City Council supports the settlement reached between the United States Department of Justice on behalf of the Environmental Protection Agency and Philadelphia Energy Solutions on a compliance waiver for its Renewable Identification Number obligations; and

WHEREAS, Philadelphia Energy Solutions is a valuable part of Philadelphia's community providing 1,100 high-paying and high-skilled jobs to local workers and, as a result, supporting local families and our community; and

WHEREAS, Unlike more traditional direct limits on emissions or requirements for installing pollution control equipment under the Clean Air Act, RINs are essentially a speculative financial instrument that trades on political news. The RINs value is not directly correlated to biofuel blending levels; and

WHEREAS, Based on established precedent, it is clear that the Department of Justice, on behalf of the Environmental Protection Agency, has the authority to enter into this type of settlement agreement in a bankruptcy and on the basis of inability or limited ability to pay or comply; and

WHEREAS, The settlement appropriately balances the interests of bankruptcy law, allowing companies to successfully reorganize, and the interests of environmental law, ensuring compliance with environmental laws; and

WHEREAS, The settlement imposes new restrictions on Philadelphia Energy Solutions. The company must surrender credits twice a year for compliance and pay stipulated penalties at statutory maximum levels if it fails to comply with the more stringent settlement terms; and

WHEREAS, The settlement ensures that there are no continuing violations of the Clean Air Act. The compliance periods covered by the settlement will be over by the time the company emerges from bankruptcy and no more bio...

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