ELR Citation: 54 ELR 20077
No(s). 22-1210 (D.C. Cir. May 14, 2024)

The D.C. Circuit rejected challenges to renewable fuels standards EPA set for 2020, 2021, and 2022. Cellulosic biofuel producers argued the standards were set too low, and petroleum refiners argued they were set too high. Specifically, the biofuel producers argued EPA misinterpreted or unreasonably applied the cellulosic waiver provision when it lowered the cellulosic biofuel volumes to the "projected volume available" during each calendar year. The court held EPA's decision not to include carryover cellulosic renewable identification numbers (RINs) in calculating the project volume of available cellulosic biofuel was not a mistake because the waiver provision unambiguously excluded carryover cellulosic RINs from the “projected volume available.” The petroleum refiners separately argued EPA failed to adequately consider the "retroactivity" of the 2022 applicable volumes, arbitrarily and capriciously relied on "implied statutory targets" in setting applicable volumes, and failed to adequately explain how it balanced statutory factors. The court found EPA took sufficient care to minimize the hardship caused by its late issuance of the 2022 standards, reasonably used implied statutory targets in setting 2022 applicable volumes, and reasonably explained how the fuel volumes struck a balance between competing statutory factors. It denied the petitions for review.