HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels Association
Issues
Does the term “extension” in Section 7545(o)(9)(B)(i) of the Renewable Fuel Standards require small refineries to have continuously received the hardship exemptions since 2011 to qualify for a hardship exemption under the statute?
This case asks the Supreme Court to decide whether the EPA’s Renewable Fuel Standards (“RFS”) requires small refineries to have continuously received the hardship exemption since 2011 to qualify for a hardship exemption under Section 7545(o)(9)(B)(i). Specifically, the Court must determine whether the statutory phrase “extension” acquires one of two definitions: a narrow definition, preferred by the Tenth Circuit and Respondent Renewable Fuels Association (“RFA”), which supports the case for continuity; or a broad reading, supported by Petitioner HollyFrontier Cheyenne Refining (“Cheyenne”), which effectively means to “grant” or “make available.” In selecting the appropriate definition, the Court must decide if and to what extent it should read “extension” apart from its broader statutory context, or consider other factors such as congressional purpose and whether the EPA’s interpretation receives deference. This case has policy implications for the finances of local refineries, economies of local communities, and environmental health.
Questions as Framed for the Court by the Parties
Whether, in order to qualify for a hardship exemption under Section 7545(o)(9)(B)(i) of the Renewable Fuel Standards, a small refinery needs to receive uninterrupted, continuous hardship exemptions for every year since 2011.
In 2005 and 2007, Congress amended the Clean Air Act, 42 U.S.C. § 7401, to direct the Environment Protection Agency (“EPA”) to require gasoline sold in the United States to include an increasing amount of renewable fuel. Renewable Fuels Association v. U.S. Environmental Protection Agency at 1215.
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Additional Resources
- Alan Kovski, Supreme Court to Review Refining Exemption Decision for Renewable Fuels, Oil & Gas Journal (Jan. 11, 2021).
- Shannon Walker, Supreme Court to Hear Statutory Interpretation Case on Renewable Fuel Standard Program, Jurist (Jan. 10, 2021).