Ethanol Blog

LINCOLN, Neb. (DTN) -- The U.S. Supreme Court on Monday granted refiners' petition to hear a case that could determine where current and future legal challenges on small-refinery exemptions will be argued.

In recent years federal appeals courts have been split on which court is the proper venue for continued legal challenges on small-refinery exemptions to the Renewable Fuel Standard.

In other words, if a current split between federal appeals court circuits is allowed to continue it would allow refiners to essentially venue shop for courts friendly to their cause in RFS cases.

If the Supreme Court resolves the split, it will set a national standard for how future RFS cases are litigated.

In January 2024, the Renewable Fuels Association and Growth Energy asked for a rehearing on a court decision in November 2023 that overturned the EPA's rejection of small-refinery waivers for six oil companies.

The U.S. Court of Appeals for the Fifth Circuit determined in November 2023 that it was the proper venue to hear the challenge brought by those refiners. The RFA argued the Fifth Circuit erred in that ruling, instead saying in a petition that the U.S. Court of Appeals for the District of Columbia Circuit had "exclusive venue" on challenges to EPA's April and June 2022 SRE decisions.

Other small refineries petitioned for review of the 2022 decisions to the Third, Seventh, Ninth, 10th, 11th and D.C. circuits. Each of the circuits either dismissed the petitions without prejudice for improper venue or transferred them to the D.C. circuit.

When appellate courts are split the Supreme Court usually steps in on a case.

Although the ethanol groups filed petitions with the Supreme Court, none of them filed briefs in the case to this point.

"The Fifth Circuit was clearly an improper venue to hear challenges on small-refinery exemptions," the RFA and Growth Energy said in a joint statement on Monday.

"Because the Fifth Circuit opinion set up a clear split with several other Circuit courts on the question of venue, this is precisely the sort of issue that the Supreme Court is meant to resolve. The court has agreed and we look forward to participating in the case and having this issue settled once and for all.

"The refining community's abuse of small-refinery exemptions destroys demand for biofuels nationwide, which negatively impacts farmers and bioethanol producers regardless of where they operate. The economic and environmental impact of this abuse does not recognize state lines. The decision in this case should strengthen the RFS by giving biofuel producers and their farm partners the certainty they deserve."

Read more on DTN:

"Ethanol Groups Petition Supreme Court," https://www.dtnpf.com/…

"RFA Petitions Court on RFS Exemptions," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

(c) Copyright 2024 DTN, LLC. All rights reserved.