SOURCE: Growth Energy
April 15, 2025
BY Growth Energy
Growth Energy and Clean Fuels Alliance America filed a reply brief today in a case challenging the U.S. EPA for its failure to reallocate gallons lost due to small refinery exemptions (SREs) granted after renewable volume obligations (RVOs) have been issued under the Renewable Fuel Standard (RFS).
“Biofuel producers and their farm partners were never meant to bear the burden of billions of gallons of demand potentially lost to past-year SREs that haven’t been properly accounted for,” said Growth Energy CEO Emily Skor. “All this case is asking EPA to do is honor the spirit of the RFS by ensuring that RVO volumes are met each year, and give rural America an economic boost by allocating lost biofuel blending obligations to oil refiners, where they belong.”
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Read the full brief here.
Background
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The case in question pertains to the 2020 RVOs, originally published by EPA on February 6, 2020. The RVO was challenged in the D.C. Circuit by several parties soon thereafter. Growth intervened in support of parts of the rule on behalf of EPA and, separately, petitioned the court to challenge EPA’s failure to reallocate gallons lost to past SREs. After the cases were consolidated (Case No. 20-1046), and after initial briefing in late 2020, the court granted motions to stay the consolidated cases pending the Supreme Court’s decision on SRE eligibility in HollyFrontier v. EPA. The case proceeded until December 2021, when EPA issued a new proposed rule for the 2020 RVO as well as 2021-2022 RVOs and sought remand without vacatur of the original 2020 RVO. The court deferred decision on remand and continued to stay the case. EPA’s final 2020-2022 RVOs also failed to reallocate past SREs. The court continued to stay the original 2020 RVO case until after the D.C. Circuit’s opinion on new cases challenging the new 2020-2022 RVOs. The D.C. Circuit upheld the new 2020-2022 RVOs on May 14, 2024 (Case No. 22-1210), after which time the court lifted the stay on the original 2020 RVO challenge and set a briefing schedule.
After today’s reply brief, the court’s next step will be to set a schedule for oral argument in the coming weeks or months.
The U.S EPA on July 17 released data showing more than 1.9 billion RINs were generated under the RFS during June, down 11% when compared to the same month of last year. Total RIN generation for the first half of 2025 reached 11.17 billion.
The U.S. EPA on July 17 published updated small refinery exemption (SRE) data, reporting that six new SRE petitions have been filed under the RFS during the past month. A total of 195 SRE petitions are now pending.
The USDA has announced it will delay opening the first quarterly grant application window for FY 2026 REAP funding. The agency cited both an application backlog and the need to disincentivize solar projects as reasons for the delay.
CoBank’s latest quarterly research report, released July 10, highlights current uncertainty around the implementation of three biofuel policies, RFS RVOs, small refinery exemptions (SREs) and the 45Z clean fuels production tax credit.
The U.S. EPA on July 8 hosted virtual public hearing to gather input on the agency’s recently released proposed rule to set 2026 and 2027 RFS RVOs. Members of the biofuel industry were among those to offer testimony during the event.