Key Takeaways
- The EPA is adopting a new approach to review small refinery exemption requests amidst ongoing litigation.
- 195 petitions for small refinery exemptions are currently pending, with potential rulings expected soon.
New EPA Strategy on Small Refinery Exemptions
The Environmental Protection Agency (EPA) is set to revise its strategy for handling small refinery exemption requests, as indicated by recent federal court filings. Acting Assistant Attorney General Adam R.F. Gustafson shared with a D.C. appeals court that the agency has developed this new approach and plans to issue decisions on both current petitions and those involved in legal disputes, including prior denials.
Over the past decade, litigation surrounding the EPA’s decisions on small refinery exemptions has been ongoing. In 2022, the agency rolled back 36 exemptions that had been granted by the Trump administration in 2018, following a court ruling that required the agency to reassess those applications. Subsequently, the D.C. Circuit Court of Appeals overturned several of the agency’s denial decisions made in 2022 regarding new exemption requests.
A recent Bloomberg report indicates that the EPA could announce rulings on these pending petitions as early as this week. According to EPA data, there are currently 195 petitions awaiting decisions.
During the American Coalition for Ethanol’s annual meeting in Sioux Falls, South Dakota, CEO Brian Jennings addressed industry stakeholders, noting that the EPA will likely face further legal scrutiny regardless of its actions concerning these exemption requests. Jennings expressed cautious optimism for the future of small refinery exemptions, stating, “I think we’re finally seeing some light at the end of the tunnel… but we still have some of this unfortunate history that we’re going to have to deal with here in the coming days and weeks.”
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