US Supreme Court to weigh in on proper judicial venue for SRE petitions

The U.S. Supreme Court granted what’s called “certiorari”—meaning it will review lower court rulings—and will take on the issue of whether small-refinery exemptions (SREs) under the Renewable Fuel Standard should be heard by regional U.S. circuit courts or the D.C. circuit court after conflicting opinions from several federal appeals courts.

In May, two U.S. biofuel associations—Growth Energy and the Renewable Fuels Association—jointly petitioned the Supreme Court to overturn an opinion from the U.S. Court of Appeals for the Fifth Circuit regarding EPA’s denials of several SREs under the RFS.

In their petition, Growth Energy and RFA argued that challenges to those denials should be adjudicated solely in the U.S. Court of Appeals for the D.C. Circuit, not in regional circuits like the fifth, which only covers Louisiana, Mississippi and Texas.

In contrast to all other federal appeals courts that evaluated this venue issue, the fifth circuit concluded that it was the proper venue to hear and rule on these challenges, despite the fact that EPA’s SRE policy is “nationally applicable” and “based on a determination of nationwide scope or effect.” 

In a joint statement published Oct. 21, Growth Energy and RFA said, “The fifth circuit was clearly an improper venue to hear challenges on SREs. Because the fifth-circuit opinion set up a clear split with several other circuit courts on the question of venue, this is precisely the sort of issue that the Supreme Court is meant to resolve. The court has agreed, and we look forward to participating in the case and having this issue settled once and for all. The refining community’s abuse of SREs destroys demand for biofuels nationwide, which negatively impacts farmers and bioethanol producers regardless of where they operate. The economic and environmental impact of this abuse does not recognize state lines. The decision in this case should strengthen the RFS by giving biofuel producers and their farm partners the certainty they deserve.”

The Iowa Renewable Fuels Association also weighed in on the Supreme Court’s decision to grant certiorari.

“It’s time for the U.S. Supreme Court to put an end to venue shopping by refiners seeking to avoid their RFS obligations,” said Monte Shaw, IRFA’s executive director. “Disputes over the federal RFS should be handled in the D.C. circuit court instead of having refiners file suit in multiple circuits hoping they get lucky in one. IRFA members appreciate the Supreme Court taking the case and we hope they provide clarity going forward. In addition, we applaud Growth Energy and the Renewable Fuels Association for putting this question before the Supreme Court.”