US court rejects biofuel groups' challenge over EPA refinery exemptions
A US appeals court has dismissed a legal challenge from biofuel groups over renewable fuel regulations. The case centred on how the Environmental Protection Agency (EPA) handles exemptions for small refineries. Judges ruled the dispute no longer applied after newer rules replaced those from 2020.
The lawsuit was brought by Clean Fuel Alliance America and Growth Energy. They argued that the EPA should compensate for biofuel volumes lost when refineries receive exemptions. Specifically, they wanted unused renewable fuel obligations to be reallocated to other facilities rather than carried forward in the compliance system.
The EPA has managed small refinery exemptions on a case-by-case basis since 2020. However, it has never created a formal process for redistributing the unused volumes. Instead, these obligations remain in the system for future compliance.
A three-judge panel from the US Court of Appeals for the District of Columbia Circuit declared the case moot. Their reasoning was that the 2020 regulations at the heart of the complaint had already been updated. The court did not address the core question of whether the EPA must make up for lost biofuel volumes in later years.
After issuing the decision, the court temporarily paused its effect. This allows the parties involved to request a rehearing if they choose.
The ruling leaves the EPA's current approach to refinery exemptions unchanged. Biofuel groups may still seek further legal action, but the court's decision rests on the updated regulations. For now, the agency retains discretion over how exemptions affect renewable fuel obligations.
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