Christopher W. Muntz is a longtime union pipefitter, who works at the Delaware City Refinery.
Few can say their jobs directly impact everything from our country’s economy to its national security, but, as a proud union pipefitter who has worked almost the entirety of my career at the Delaware City Refinery, I can — and so can all my co-workers.
I have seen firsthand how independent refineries like the one in Delaware City fuel more than our nation’s cars, planes and cargo ships. They also fuel our local economy. Independent refiners support thousands of family-sustaining jobs in our region. The Mid-Atlantic Clean Hydrogen Hub promises to create thousands more jobs, and that promise hinges on our local refineries and their ability to invest in new technologies and fuels. However, our government’s policies threaten refiners’ very survival.
The issue is straightforward — a broken federal regulation called the “renewable fuel standard” requires a certain amount of ethanol to be blended into our nation’s transportation fuel. Delaware’s congressional delegation must take immediate action to fix it.
Independent refineries, such as the Delaware City Refinery, cannot blend ethanol on-site because it’s too corrosive. Blenders — not refiners — do this work before the fuel goes into gas pumps. Because of this, under the RFS, refiners must purchase compliance credits called “renewable identification numbers” to comply with the regulation, as they have no control over actual ethanol blending.
There is no fixed price for these credits; their prices fluctuate wildly. When the fuel standard was first signed into law, the numbers cost a few cents each. Today, independent refiners like the Delaware City Refinery spend more on RINs annually than all other operational costs combined. This confusing regulatory system is unsustainable, and we see the dire consequences.
In 2018, the largest oil refinery on the East Coast filed for bankruptcy and cited these soaring costs. By 2020, eight additional independent refineries had ceased operations, resulting in the loss of millions of barrels in refinery capacity. By 2022, America’s oil refinery capacity reached its lowest level in eight years.
Now, calls to fix the renewable fuel standard are being overshadowed by misguided proposals to expand the nationwide sales of E15, a gasoline blend containing 15% ethanol compared to the standard 10% blend. The Environmental Protection Agency prohibits the sale of E15 in some parts of the country because the fuel worsens ground-level ozone pollution and smog. It cannot be used in motorcycles, school buses, boats and other off-road equipment because it harms engines and environmental quality.
Adding insult to injury, Midwestern lawmakers have historically called for using federal approval of nationwide E15 sales year-round to expand the already unachievable ethanol mandate. However, expanding E15 sales will not significantly increase ethanol use. There are currently no restrictions on using E15 anytime from Washington, D.C., up to Maine, but only a few stations offer the fuel. Instead, this push further threatens refinery operations and our jobs. When independent refineries shut down, real people — my friends, family and neighbors — lose their livelihoods. Families struggle to put food on the table.
Putting independent refineries at risk also jeopardizes America’s energy independence. We have seen how the temporary closure of just one refinery can devastate our fuel supply, triggering high gas prices and long lines at gas stations.
Fortunately, there is a solution to contain volatile renewable identification number prices. Sen. Chris Coons and Rep. Lisa Blunt Rochester, both D-Del., sponsor bipartisan, bicameral legislation that would offer a fixed-price RIN. I encourage Sen. Tom Carper, D-Del., to support this legislation and ensure that it moves through the Senate Environment & Public Works Committee, especially as members of Congress from the Midwest continue to push for nationwide E15 sales. Any legislation expanding E15 must be coupled with common sense reforms to fix the fuel standard for the long term.
I cherish my job and take pride in powering our economy and energy security. But, until we fix the renewable fuel standard, our jobs, economy and security hang in the balance. On behalf of the men and women who work day in and day out at the Delaware City Refinery, as well as their supportive families, thank you for your consideration.
Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.
