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HF Sinclair sues EPA over biofuel exemption delays
Energy company says EPA has delayed decisions on refinery exemptions from blending mandates
Steam rises from a stack outside the Poet ethanol biorefinery in Gowrie, Iowa. (Daniel Acker/Bloomberg, File)
Key Takeaways:
- HF Sinclair sued the EPA on July 24, alleging the agency has delayed decisions on refinery exemptions from federal renewable fuel blending mandates.
- The dispute affects refiners seeking relief from biofuel blending costs while lawmakers debate policies that farmers view as boosting demand for crops.
- HF Sinclair said compliance credits expire Sept. 1, while exemption decisions remain pending amid congressional debate over nationwide E15 gasoline sales.
HF Sinclair Corp. is suing the Environmental Protection Agency for continuing to delay a decision on exemptions from mandates requiring refiners to blend renewable fuels into gasoline and diesel.
The EPA is “dragging its feet on a decision it could’ve made months ago,” the company said in a lawsuit filed July 24. A spokesperson for the EPA said the agency doesn’t comment on pending or ongoing litigation.
HF Sinclair is one of many companies waiting on decisions on who will receive breaks from biofuel blending quotas. Small and medium-size refiners say they need the exemptions to keep some operations profitable, as blending renewable fuels is a huge expense for them.
Biofuel blending has been in the spotlight recently as lawmakers debate policy. For farmers searching for new demand for their large crops, expanding biofuels sales are seen as a way to combat the rising cost of inputs like fertilizer and fuel.
The U.S. in March rolled out its most aggressive biofuel blending mandates to date after months of delays. Existing federal law allows small refineries to be granted exemptions from the mandates if they demonstrate “disproportionate economic hardship.”
HF Sinclair noted in the lawsuit that compliance credits refiners use to meet their federal blending obligations expire Sept. 1 and that the court previously recognized “the clock is ticking” for petitioners to obtain relief.
The issue over exemptions comes amid a related fight in Congress to pass year-round, nationwide sales of higher-ethanol E15 gasoline. A recent proposal that passed the House of Representatives paired E15 sales with cuts to exemptions from blending mandates. That bill faces steep opposition from some in the Senate, as some refiners have lobbied heavily against it.
