In a ruling today, the U.S. Court of Appeals for the D.C. Circuit (the Appeals Court) upheld the entirety of the U.S. Environmental Protection Agency’s (EPA’s) 2020-2022 RVO rule.
In addition to upholding EPA’s volumes for each category of renewable fuels governed by the Renewable Fuel Standard (RFS), the court also upheld revised renewable volume obligation (RVO) regulations, which include projections of future small refinery exemptions (SREs) from the RFS. With these regulations, EPA can ensure that RFS blending obligations are met and RFS gallons are properly accounted for. Furthermore, the court upheld EPA’s issuance of an additional 250 million RIN supplemental RVO in response to the court’s 2017 ruling in Americans for Clean Energy v. EPA. In celebrating the ruling by the D.C. Appeals Court, Growth Energy CEO Emily Skor issued the following statement:
“This ruling is a win for renewable fuel producers and consumers. In addition to upholding blending obligations, it protects against SRE abuse by projecting future exemptions, properly allocating RIN obligations, and bringing certainty to the marketplace. Thanks to the D.C. Circuit opinion, EPA can ensure the integrity of its annual RVOs and address shifts in market conditions and how refiners meet their blending obligations. Put simply, this ruling will allow the RFS to operate the way Congress intended and give the nation’s biofuel producers what they need to continue doing what they do best—lower emissions while saving consumers money. Looking ahead, RVOs should reflect the continued innovation and growth of the renewable fuels industry.