Two small refiners are once again challenging the Environmental Protection Agency’s (EPA) decision to deny small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS). The legal proceedings took place in the Fifth Circuit Court of Appeals, where one of the refiners called on the court to vacate EPA’s denials in April and June 2022 and reinstate the SREs granted for 2017-2018. Meanwhile, the other refiner sought either the granting of the exemptions or alternative relief.
However, Judge Patrick Higginbotham raised concerns about whether these cases should be viewed as reflecting a national decision warranting consideration in the DC Circuit. EPA argued it had evaluated the SREs and made a singular determination concerning them. In contrast, the refiners contended that each company had specific needs and circumstances that justified keeping the case in the Fifth Circuit.
The outcome of this legal battle remains uncertain, including whether the Fifth Circuit will order the cases to be transferred to the DC Circuit. This ongoing litigation adds to the lengthy history of disputes involving small refiners in the RFS program.
