June 29, 2021
Analysis of Supreme Court Decision Allowing Renewable Fuel Standard Exemptions
Late last week, the Supreme Court issued a decision allowing small refineries to reapply for renewable fuel standard (RFS) exemptions even if their previous exemptions had lapsed. This decision will allow small refineries to continue operating under unfavorable market conditions and will help to moderate spikes in consumer prices, writes AAF’s Ewelina Czapla in a new analysis.
The EPA’s RFS program requires that transportation fuels incorporate renewable fuels and, in turn, imposes costs on obligated parties and consumers alike. The Supreme Court’s decision to allow exemptions to be extended to obligated parties following a lapse is in keeping with the realities of the market. By avoiding disproportionate economic harm through a waiver, small refineries are able to continue operating and communities and consumers can avoid unnecessary price spikes, all while helping the United States achieve the goals of increased energy independence and reduced environmental impact.