Ethanol groups take EPA to court over refinery exemptions

A coalition of ethanol groups has filed suit against the US Environmental Protection Agency (EPA) over granting "secretive" waivers from the Renewable Fuel Standard (RFS) to profitable refining companies.

The Renewable Fuels Association (RFA), National Corn Growers Association (NCGA), American Coalition for Ethanol (ACE) and National Farmers Union (NFU), with support of Farmers Union Enterprises, lodged the suit on Tuesday in the US Court of Appeals for the 10th Circuit. The organisations are challenging three waivers provided to the refinery in Wynnewood, Oklahoma, owned by a subsidiary of CVR Energy Inc (NYSE:CVI), and the refineries in Cheyenne, Wyoming and Woods Cross, Utah, which are owned by Holly Frontier Corp (NYSE:HFC). They say these waivers represent abuses of EPA's authority to exempt certain small refineries.

"EPA left us with no choice but to challenge their systematic cuts to ethanol blending in the U.S. by distorting the intent of the law to grant secret hardship waivers to refineries which in some cases exceed the definition of ‘small’ and fall short of demonstrating ‘disproportionate economic hardship,’"said Brian Jennings, chief executive of ACE.

The groups say that while until late last year, EPA granted a handful of exemptions per year, it has provided over two dozen exemptions in recent months.

The Advanced Biofuels Association (ABFA) filed lawsuit against EPA over small refinery exemptions in early May.

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