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The
decision came after appeals by refining companies that argued
the 10th Circuit Court's decision last year had improperly
deprived them of a method to avoid financial hardship granted by
Congress.
Under the Renewable Fuel Standard, refiners must blend billions
of gallons of corn-based ethanol and other biofuels into their
fuel or buy credits from those that do - a law meant to help
farmers and reduce dependence on foreign oil.
But small facilities under financial stress can also seek
waivers from the obligation, and the Trump administration has
dramatically ramped up the number of such exemptions granted to
the industry - angering biofuel producers that claim the waivers
undercut demand for their products.
After a challenge from biofuel industry groups, the 10th Circuit
ruled last January that the U.S. Environmental Protection Agency
can only grant the so-called Small Refinery Exemptions to
facilities that have received them continuously each year since
2010. That decision cast doubt over the entire waiver program,
since most of the refineries securing waivers in recent years
have not secured them continuously.
"We are disappointed in the Supreme Court's decision to review
the case but will continue to vigorously pursue a resolution to
the damage that small refinery exemptions do to the biodiesel
industry," said Kurt Kovarik, spokesman for the National
Biodiesel Board.
The Fueling American Jobs Coalition, which advocates on behalf
of refiners, cheered the Supreme Court's decision, saying the
review comes at an "urgent time" for refiners battered by the
economic downturn.
The court is expected to hear the case in April, and a ruling
could take several months.
(Reporting by Stephanie Kelly; Writing by Richard Valdmanis;
Editing by Leslie Adler)
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