A U.S. appeals court has upheld a rule set by President Joe Biden's administration regarding the amount of biofuels required to be blended into the nation's fuel mix from 2020 through 2022. The ruling, issued by the U.S. Court of Appeals for the District of Columbia Circuit, dismissed a challenge by oil refiners against the mandates, affirming the lawful exercise of discretion by the Environmental Protection Agency (EPA) in setting the requirements for the specified years under the Renewable Fuel Standard (RFS).
Under the RFS, oil refiners are obligated to blend a significant quantity of biofuels into the U.S. fuel pool or purchase credits from compliant entities. These credits, known as Renewable Identification Numbers (RINs), serve as evidence of compliance with the mandates.
Historically, small refiners could seek exemptions from the requirements if they could demonstrate financial harm arising from the mandates.
In its decision, the EPA set biofuel blending mandates for 2022 at 20.63 billion gallons, alongside retroactive volume mandates for 2021 at 18.84 billion gallons and for 2020 at 17.13 billion gallons. While the agency denied waivers to oil refiners seeking exemption from the requirements, it announced an extension for small refiners to fulfill their 2020 blending obligations.
Challenging the rule, oil refiners contended that the standards were excessively stringent. Simultaneously, producers of cellulosic biofuels, derived from sources like wood waste, raised concerns that the standards for their products were too low.
In its ruling, the court stated, “We hold that EPA complied with the law.”
The decision has been met with approval from biofuel groups. Growth Energy CEO Emily Skor remarked, “Thanks to the D.C. Circuit opinion, EPA can ensure the integrity of its annual Renewable Volume Obligation and address shifts in market conditions and how refiners meet their blending obligations.”
