With the small refinery exemption process validated, EPA must make the RFS a workable program for U.S. refiners and consumers.
WASHINGTON DC (June 25, 2021) – The American Energy Alliance (AEA), the country’s premier pro-consumer, pro-taxpayer, and free-market energy organization, today applauded the U.S. Supreme Court decision in Holly Frontier Cheyenne Refining, LLC v. Renewable Fuels Association which reaffirmed the long-established understanding of the small refinery exemption (SRE) process under the Renewable Fuel Standard (RFS). As the Court correctly held, Congress intended SRE’s to be an ongoing safety valve for refiners facing economic hardship from the costs of complying with the RFS.
“With the cost of RINs [RFS compliance credits] at all-time highs and refiners still recovering from the impacts of the coronavirus shock, exemptions for small refineries are needed today more than ever. Following today’s straightforward decision, EPA must immediately take action to approve pending SRE requests sitting before them.
“The continuing need for hardship exemptions exposes the damage the RFS continues to create on the American economy and consumers. Moving forward, EPA should take action to make the RFS a workable program for U.S. refiners and consumers. With the ongoing RFS reset process and the expiration of mandated volumes next year, EPA has a golden opportunity to reorganize the RFS in a way that focuses more on protecting fuel consumers rather than subsidizing biofuel producers.”
View the full text of the decision here.
Additional Resources:
- IER: Renewable Fuel Standard Policy Brief
- GAO Finds No Real Benefit to the Renewable Fuel Standard
- Plugged In Podcast #51: Chet Thompson of AFPM on the Refinery Industry During the Pandemic
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