US Appeals Court Affirms Biofuel Blending Mandates for 2020-2022, According to Reuters

By Stephanie Kelly

A U.S. appeals court has upheld a rule from the Biden administration requiring oil refiners to incorporate a specified volume of biofuels into the nation’s fuel supply from 2020 through 2022. This ruling dismisses a challenge from oil refiners regarding the mandates.

The U.S. Court of Appeals for the District of Columbia Circuit determined that the U.S. Environmental Protection Agency (EPA) acted within its authority by establishing the blending requirements for the three-year period in question.

According to the Renewable Fuel Standard (RFS), oil refiners must either blend billions of gallons of biofuels into the U.S. fuel mix or obtain credits from those who do. These credits, referred to as RINs, serve as proof of compliance with the blending mandates.

Historically, small refiners could apply for exemptions if they could demonstrate that the mandates caused financial hardship.

In 2022, the EPA set the biofuel blending mandate for that year at 20.63 billion gallons, along with retroactive mandates of 18.84 billion gallons for 2021 and 17.13 billion gallons for 2020. The EPA denied waivers for oil refiners seeking exemption from these requirements but allowed extra time for small refiners to fulfill their 2020 obligations.

The oil refining industry contested the rule, claiming the standards were excessive. Conversely, producers of cellulosic biofuels, which are made from materials like wood waste, also disputed the rule, arguing that the standards for cellulosic biofuels were insufficient.

The court stated in its ruling, “We hold that EPA complied with the law.”

Biofuel advocates welcomed the decision. Emily Skor, CEO of Growth Energy, remarked that the ruling enables the EPA to uphold the integrity of its annual Renewable Volume Obligation and to adapt to changing market conditions regarding how refiners satisfy their blending responsibilities.