Philadelphia Energy Solutions has filed for bankruptcy due to the costs of complying with a ridiculous Renewable Fuel Standard punishing virtually everyone.

Philadelphia Energy Solutions (PES) recently announced it is filing for bankruptcy. PES operates the largest oil-refining complex on the east coast, with its two refineries capable of processing 335,000 barrels of oil per day. In filing for bankruptcy, PES citied its inability to pay for the 2018 cost of complying with the Renewable Fuel Standard (RFS), which mandates ever increasing levels of biofuel be mixed into the nation’s fuel supply regardless of demand or even whether the biofuels actually exist.

The specific cost that pushed PES over the cliff is the purchasing of RINs (short for Renewable Identification Numbers). The RFS requires that a company purchase RINs to cover any biofuel volumes below the federally mandated levels. In the case of PES, a merchant refiner that only processes oil, not biofuels, this means purchasing RINs to cover their entire mandated amount.

The opaqueness and volatility of the market for RINs means that this cost is highly variable and so prone to abuse that even the beneficiaries of the subsidy recognize the problem. RIN costs have soared in recent years, with PES forced to put up $217 million to purchase compliance with the RFS just in 2017—more than the company spent on all salaries and benefits for its employees.

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