HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels Association

On June 25, 2021, the Supreme Court of the United States issued a 6-3 decision in HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels Association. The case centered on whether a small refinery seeking a hardship exemption under the Renewable Fuel Standard program of the Clean Air Act must show that it has received uninterrupted exemptions in every preceding year. The Tenth Circuit had held that the statutory term "extension" required continuity, meaning only refineries that had continuously maintained exempt status could apply. The Supreme Court reversed, ruling that the plain text of the statute does not impose such a continuity requirement. Justice Neil Gorsuch wrote the majority opinion, which was joined by Chief Justice Roberts and Justices Thomas, Breyer, Alito, and Kavanaugh. The decision allows small refineries to apply for exemptions even if they had not sought or received them in previous years.

The Supreme Court reversed the judgment of the U.S. Court of Appeals for the Tenth Circuit, holding that the plain statutory language does not require a small refinery to demonstrate continuous prior-year exemptions. The case was remanded for further proceedings consistent with the opinion.

Whether a small refinery seeking a hardship exemption from the Renewable Fuel Standard must have received continuous uninterrupted exemptions in all prior years to be eligible for an "extension" under the Clean Air Act.

The ruling broadens eligibility for small refinery hardship exemptions, potentially reducing the volume of renewable fuels blended into the U.S. fuel supply. It was welcomed by refining industry groups as relief from costly compliance obligations, but criticized by biofuel producers and farm organizations who argued it undermines the Renewable Fuel Standard and depresses demand for corn and biodiesel. The decision also clarified statutory interpretation principles regarding the word "extension" in federal environmental law.