ELR Citation: 54 ELR 20118
No(s). 22-1073 (D.C. Cir. Aug 14, 2024)

In a per curiam opinion, the D.C. Circuit dismissed in part and denied in part challenges to EPA's 2022 denial of pending Renewable Fuel Standard (RFS) exemption petitions filed by small refineries. EPA had determined the only costs relevant to showing economic hardship were those caused by compliance with the RFS program, that refineries fully and efficiently passed such costs onto their customers, and that small refineries did not face any economic hardship imposed by compliance. Because that rationale departed from prior practice, the Agency provided alternative compliance options to small refineries that had previously received exemptions. A trade group challenged those, and two refineries argued the April option did not provide them adequate relief. The court concluded EPA's rationale for denying the exemptions was contrary to law and arbitrary and capricious, and vacated the denials except with respect to two refineries that EPA correctly determined were ineligible on other grounds unaffected by vacatur. It dismissed the group's petition for lack of standing, denied one refinery petition because EPA's decision was adequately explained, and dismissed the other because it did not challenge a final agency action.