Bill Aims to Clarify Congressional Intent on ‘Extension’ of SREs

by Erin Voegele (Biodiesel Magazine) Reps. Randy Feenstra, R-Iowa, and Angie Craig, D-Minn., on July 2 introduced the Small Refinery Exemption Clarification Act of 2021, a bill that aims to clarify the definition of “extension” in response to the U.S. Supreme Court’s June 25 ruling on small refinery exemptions (SREs).

The Supreme Court on June 25 reversed the Tenth Circuit Court of Appeal’s Jan. 20, 2020, decision on SREs, ruling that the U.S. EPA can extend SREs to small refineries whose earlier temporary exemptions had lapsed. Arguments in the case focused primarily on congressional intent and how the Renewable Fuel Standard statute’s use of the word “extension” should be interpreted.

The legislation introduced by Feenstra and Craig aims to clarify congressional intent on the matter by limiting future SREs to refineries that have received a continuous exemption since 2011.

The bill is supported by the Iowa Renewable Fuels Association, Growth Energy, the Renewable Fuels Association, the National Corn Growers Association, and the National Farmers Union.

The Small Refinery Exemption Clarification Act seeks to correct a flaw in the small refinery exemption (SRE) program regarding who is eligible. The RFS always intended to blend more low-carbon biofuels into our domestic fuel supply every year. We firmly believe that refiners have had 16 years to adjust their operations to comply with the RFS, and that EPA’s SRE authority was meant to steer them toward compliance rather than provide a never-ending excuse to avoiding their blending obligations. Legislation like this will help stabilize demand in our industry, so we can continue to produce low-carbon biofuels, provide clean energy jobs in rural areas, and achieve our nation’s climate reduction goals. We are grateful to Representatives Randy Feenstra and Angie Craig for continuing to push to restore integrity to a program run amuck,” said Emily Skor, CEO of Growth Energy. READ MORE

Excerpt from Reuters: Democrat lawmakers met EPA chief Michael Regan on Tuesday after reports that the administration was considering giving relief to refiners from the mandates. Craig, Iowa's Cindy Axne, and Cheri Bustos and Lauren Underwood from Illinois were among those in the meeting.

EPA spokesperson Nick Conger confirmed the EPA met the lawmakers but declined to give details about the talks.

Lawmakers representing refinery workers have also been lobbying the administration, saying the obligations were hurting refineries and could drive them out of business.

The New Jersey State Senate this week passed a resolution calling on the EPA to reduce mandates to relieve refiners. READ MORE