Court rules against EPA small refinery waivers

by | Jan 28, 2020 | 5 Ag Stories, News

The Environmental Protection Agency (EPA) must reconsider its small refinery exemptions, following a recent court decision. A document dated January 24 from the U.S. Court of Appeals for the 10th Circuit says the EPA overstepped its authority to grant three specific waivers in question. The decision is expected to broadly impact the EPA approach to granting waivers, according to the Renewable Fuels Association, which claims the waivers are unlawful.

The court ruling stems from a May 2018 challenge brought against EPA by the Renewable Fuels Association (RFA), the National Corn Growers Association (NCGA), the American Coalition for Ethanol (ACE) and National Farmers Union (NFU). NFU President Roger Johnson says, ?We believe this ruling will help restore the ability of the Renewable Fuels Standard (RFS) to drive demand.? Among other findings, the court says EPA cannot ?extend? exemptions to any small refineries whose earlier, temporary exemptions had lapsed.

NCGA President and Iowa Farmer Kevin Ross responded to the news by saying, ?The Court?s decision is welcome news for corn growers. Ethanol is an incredibly important value-added market for corn farmers, and EPA?s waivers have reduced RFS volume requirements by more than 4 billion gallons over the past three years, impacting corn demand. We are optimistic this decision will finally put an end to the demand destruction caused by waivers and keep the RFS back on track.?

The court also found EPA abused its discretion in failing to explain how the agency could conclude that a small refinery might suffer a disproportionate economic hardship.