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A 10th Circuit Court ruled on Friday three small refinery exemptions (SREs) granted for the 2016 compliance year represented an overstepping of EPA’s authority.
 
 
As we reported on Monday, a 10th Circuit Court ruled on Friday three small refinery exemptions (SREs) granted for the 2016 compliance year represented an overstepping of EPA’s authority. The Renewable Fuel Standard (RFS) is written in such a way that any hardship exemption after 2010 must take the form of an extension. That opens the possibility similar SREs could also be rescinded and could dramatically reduce EPA’s issuance of such waivers going forward. 

The industry is still working to assess the implications of this decision, but considering the number of SREs granted surged from seven in 2015 to 35 in 2017, the impact could be major. EPA granted 19 of 20 small refinery extension petitions in 2016, 35 of 36 eligible and maintained petitions in 2017, and 31 of 37 eligible and maintained petitions in 2018. The court opinion also points out the volume of exempted gasoline and diesel went from roughly 2 billion gallons in 2013 to a peak of 17 billion gallons in 2017, with another 13 billion gallons exempted in 2018. Read more. . .

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