WASHINGTON, D.C.- Hollyfrontier Cheyenne Refining LLC v. Renewable Fuels Association was heard in front of the U.S. Supreme Court on Tuesday and will hold large implications for Iowa and Nebraska. The case addresses questions over whether small refineries can request exemptions from the Renewable Fuel Standard.

Iowa and Nebraska are the top producers of ethanol made with corn. Iowa is the top producer of biodiesel, made with soy beans. The standard sets the amount of biofuels that must be blended into gasoline and diesel.

Nebraska Attorney General Doug Peterson and Iowa Attorney General led an effort of eight states to file an amicus brief with the Supreme Court supporting the Renewable Fuels Association. The association argues that exemptions should not be granted in cases where they haven't been in place continuously. In 2020, The Court of Appeals ruled that the EPA issued exemptions to refineries that did not qualify. These same refineries are arguing that they will face financial ruin if they are forced to buy ethanol and biodiesel at the levels demanded by Congress.

“Simply put, if Congress wanted to adopt the generally available exemption petitioners advocate, it would not have enacted the scheme it did here,” Christopher Michel, Department of Justice said. “That scheme does not doom small refineries to failure. The vast majority of small refineries, including the petitioners’, have successfully complied with the RFS in many prior years.”

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