WASHINGTON D.C.- The U.S. Supreme Court on Friday made it easier for small oil refineries to win exemptions from a federal law requiring increasing levels of ethanol and other renewable fuels to be blended into their products, a major setback for biofuel producers.

The justices overturned a lower court decision that had faulted the U.S. Environmental Protection Agency for giving refineries in Wyoming, Utah and Oklahoma extensions on waivers from renewable fuel standard (RFS) requirements under a law called the Clean Air Act even though the companies' prior exemptions had expired.

The extensions at issue were given to units of HollyFrontier Corp (HFC.N) and CVR Energy Inc (CVI.N).

The 6-3 ruling, authored by conservative Justice Neil Gorsuch, compared these extensions to ones granted in everyday life such as to a student wanting more time to complete a term paper even though the deadline has passed or a business contract whose term had expired.

"It is entirely natural - and consistent with ordinary usage - to seek an 'extension' of time even after some time lapse," Gorsuch said.

In a dissent, conservative Justice Amy Coney Barrett, joined by liberal justices Sonia Sotomayor and Elena Kagan, faulted the ruling's interpretation of the word "extend." The "EPA cannot 'extend' an exemption that a refinery no longer has," Barrett wrote.

President Joe Biden's administration has been considering ways to provide relief to U.S. oil refiners from biofuel blending mandates.

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