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RFN releases statement on SRE appeal

Renewable Fuels Nebraska, the trade association for Nebraska’s ethanol industry, welcomed the Trump administration’s decision not to seek a re-hearing of a recent ruling by the U.S. Court of Appeals for the Tenth Circuit that struck down certain small refinery exemptions (SREs) under the Renewable Fuel Standard.

The challenge was brought against EPA in May 2018 by the Renewable Fuels Association, National Corn Growers Association, American Coalition for Ethanol, and National Farmers Union in response to the massive demand destruction caused by the Agency’s illegal and indiscriminate use of SREs. In the wake of today’s decision not to seek a re-hearing, RFN released the following statement:

“Our members and Nebraska’s ethanol producers are relieved the Trump administration is doing the right thing by allowing the Tenth Circuit court decision to stand. At a time when our industries and rural America are already suffering from the effects of COVID-19, the Saudi-Russia oil price war, and ongoing trade disputes, requesting a re-hearing would have only amplified the uncertainty in the marketplace and frustration already being experienced among Nebraska’s ethanol producers,” said Troy Bredenkamp, RFN executive director.

For the 2016-2018 RFS compliance years, EPA issued 85 SREs eroding more than 4 billion gallons of renewable fuel blending requirements. If applied nationwide, the Tenth Circuit decision would nullify many, if not all of the 25 pending SRE petitions now pending at the EPA for 2019.

“It is unfathomable why the EPA would not put the SRE issue to rest and apply the Tenth Circuit decision nationwide to all pending SRE petitions,” said Bredenkamp. “With all the headwinds facing the ethanol industry right now, it is nice to have a least a ray of sunshine break through this economic storm of uncertainty.”

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