Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Denver news in your inbox
Catch up on the most important stories affecting your hometown with Axios Denver
Des Moines news in your inbox
Catch up on the most important stories affecting your hometown with Axios Des Moines
Minneapolis-St. Paul news in your inbox
Catch up on the most important stories affecting your hometown with Axios Twin Cities
Tampa Bay news in your inbox
Catch up on the most important stories affecting your hometown with Axios Tampa Bay
Charlotte news in your inbox
Catch up on the most important stories affecting your hometown with Axios Charlotte
Photo by Spencer Platt/Getty Images
Philadelphia Energy Solutions, the East Coast's oldest and largest oil refinery, said that it will file for Chapter 11 bankruptcy protection, as part of a structuring that includes $260 million in new financing from creditors and existing owners like The Carlyle Group. Current operations are not expected to be affected.
Why it matters: The bankruptcy is certain to fuel a political fight over the Renewable Fuel Standard, the national biofuels mandate that independent refiners say is imposing burdensome costs.
Philadelphia Energy Solutions said it has spent over $800 million on compliance credits to meet RFS requirements and that it has been the company's biggest expense after crude oil purchases.
It also has been regularly highlighted as an example of private equity saving (and adding) old-line, union jobs — based on Carlyle's purchase of a majority stake in 2012 from Sunoco.
The company's bankruptcy comes as independent refiners and allied lawmakers are already pressing the Trump administration for RFS changes that ease the industry's costs.