The Department of Justice (DOJ) said the U.S. Supreme Court should uphold the decision by the U.S. Court of Appeals for the Tenth Circuit which said EPA overstepped its authority when it granted small refinery exemptions (SREs) to three refiners for the 2016 compliance year.
The court ruled the SREs should have only been made available to those refiners that had continuously received them previously.
“By providing an initial, 'temporary' exemption that can be extended only under specified circumstances, Congress struck a sensible balance, giving small refineries time to develop compliance strategies while maintaining the ultimate goal of universal compliance,” the filing from the DOJ and EPA said.
Filings by the Renewable Fuels Association (RFA) and others echoed that view, saying the law supports the court decision and that the SREs “siphon a significant portion of renewable fuel blending requirements” called for under the Renewable Fuel Standard (RFS).
The Supreme Court will hear arguments in the case April 27.