A coalition of ethanol and farm groups sued the EPA in federal appeals court on Tuesday over its system of granting “hardship” waivers from the Renewable Fuel Standard to small-volume refineries. The lawsuit challenges three exemptions “made under unusually clandestine proceedings” to refineries in Oklahoma, Wyoming and Utah.
The companies that own the refineries have estimated the exemptions saved them $170 million in compliance costs. Ordinarily, refiners must buy credits known as RINs if they don’t blend enough ethanol to satisfy the RFS. “EPA is trying to undermine the RFS program under the cover of night,” said Bob Dinneen, head of one of the ethanol trade groups involved in the lawsuit.
According to the plaintiffs, the EPA has not made public its proposed and final actions on the small-refinery exemptions nor has it said that it received petitions for waivers. The oil industry says the EPA has heeded recent court decision and the underlying law.