Wynnewood Refining Company, LLC v. EPA, No. 22-1015 (D.C. Cir. 2023)
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The Renewable Fuel Standard Program codified in the Clean Air Act requires all transportation fuel sold in the United States to contain an annually determined volume of renewable fuel. As part of its role in implementing the Program, the Environmental Protection Agency (EPA) issues renewable fuel standards announcing the annual quantity of renewables that must be sold into United States commerce. EPA failed to meet its deadlines to publish the 2020-2022 renewable fuel standards. As part of its mitigation, EPA issued a rule extending the corresponding compliance reporting deadlines. The leeway provided in that Extension Rule ensures that obligated parties will not have to file compliance reports for 2020-2022 until after EPA has published the standards for those years. In these consolidated petitions, a group of fuel refineries (the Refineries) challenged the Extension Rule. They argue that the Rule violates the Clean Air Act, or is at least arbitrary and capricious, insofar as it provides obligated parties less than 13 months’ compliance lead time and compliance intervals shorter than 12 months.
The DC Circuit denied the petitions for review. The court explained that when EPA fails to timely issue renewable fuel standards, the Clean Air Act does not bind the agency to provide obligated parties a minimum of 13 months’ compliance lead time, nor does it require compliance intervals of at least 12 months. The court likewise rejected the Refineries’ claim that EPA acted arbitrarily and capriciously in setting the compliance schedule in the Rule. Rather, the agency reasonably exercised its authority to establish the compliance timeframe for the Renewable Fuel Standard Program under the circumstances.
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