Challenges to the government’s decisions on small refinery exemptions must be heard in the D.C. Circuit Court of Appeals, the Supreme Court ruled Wednesday.
In the 7-2 decision, justices said the D.C. Circuit was the proper venue for legal challenges to the Environmental Protection Agency’s SRE decisions, effectively taking the issue out of the hands of regional circuit courts that have sometimes been less favorable to the biofuel industry. The justices held that EPA’s denials of SRE petitions fall within the national scope or effect exception.
The case involves the agency’s denial of several applications from small refiners seeking exemptions from blending requirements under the Renewable Fuel Standard. Refiners are eligible for exemptions if they can show that abiding with the requirements would cause undue economic harm.
Small refineries challenged these denials in different circuit courts. The 5th Circuit sided with six refineries in finding that the agency erred in denying their SRE petitions.
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The EPA and biofuel groups argued in the Supreme Court petition that the D.C. Circuit Court is the only appropriate venue to hear these challenges because of the national implications.
The Renewable Fuels Association and Growth Energy called the decision a victory for the domestic biofuel industry and rural communities.
“The court’s opinion today gives farmers and ethanol producers much greater certainty about SRE litigation under the Renewable Fuel Standard, which continues to be one of the nation's most successful clean energy programs,” the groups wrote in a joint statement.
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