ELR Citation: 53 ELR 20183
No(s). 22-60266, 22-60425, 22-60433, and 22-60434 (5th Cir. Nov 22, 2023)

The Fifth Circuit, 2-1, granted six small refineries' petitions to review an EPA decision denying their requested exemptions from obligations under the CAA Renewable Fuel Standard (RFS) program. The refineries challenged two actions—EPA's denial of 36 petitions from 36 small refineries seeking exemption from their RFS obligations for the 2018 compliance year, and its denial of 69 petitions from 33 small refineries seeking exemption for the 2016-2017 compliance years—arguing they were impermissibly retroactive, that the Agency's interpretation of the CAA was contrary to law, and that the Agency failed to engage in reasoned decisionmaking. The court determined there was no legitimate benefit EPA could gain from retroactive application, that the Agency's interpretation of the CAA subparagraph (B) exemption provision was unreasonable, and that the Agency's reliance on the RIN-passthrough economic theory ran counter to the evidence before it. It granted the petitions, vacated the challenged adjudications, and remanded for further consideration.