HOLLYFRONTIER CHEYENNE REFINING, LLC, et al. v. RENEWABLE FUELS ASSOCIATION et al.
No. 20–472
SUPREME COURT OF THE UNITED STATES
June 25, 2021
594 U.S. 382
GORSUCH, J.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE TENTH CIRCUIT. Argued April 27, 2021—Decided June 25, 2021
Syllabus
When Congress created the renewable fuel program (RFP) requiring most domestic refineries to blend renewable fuels into the transportation fuels they produce, see
Here, three small refineries initially received an exemption, saw it lapse for a period, and then again petitioned for an exemption under subparagraph (B)(i). EPA granted the exemptions, and a group of renewable fuel producers objected. The Tenth Circuit vacated EPA‘s decisions, concluding that the small refineries were ineligible for an “extension” under subparagraph (B)(i) because they had allowed previous exemptions to lapse.
Held: A small refinery that previously received a hardship exemption may obtain an “extension” under
(a) The key term here—“extension“—is not defined in the statute. Sometimes it can refer to an increase in time. 5 Oxford English Dictionary 597. Other times it can refer to the act of offering or making something available, such as the granting of a benefit. Id., at 595. Here, three textual clues show subparagraph (B)(i) uses “extension” in its temporal sense. First, subparagraph (A)(i)‘s initial exemption is described temporally (as lasting “until calendar year 2011“). Second, subparagraph (A)(ii)‘s exemption is also described temporally—authorizing EPA to “extend the exemption under clause (i) . . . for a period of not less than 2 additional years.” Finally, subparagraphs (A)(ii) and (B)(i) share an
(b) Subparagraph (B)(i)‘s temporal use of “extension,” however, does not require unbroken continuity. The Tenth Circuit erred by imposing such a requirement here and concluding that a small refinery is permanently ineligible for an extension once an exemption lapses. Pp. 389–396.
(1) The plain meaning of “extension” does not require unbroken continuity. Dictionary definitions contemplate the possibility of resumption after an interruption. Federal rules permit litigants to seek (and courts to grant) an “extension” of time even after a lapse. See
(2) A different statutory context might make for a different outcome, for example, where Congress uses modifying language requiring an extension to be “consecutive” or “successive.” See, e. g.,
(3) Respondents contend the statute establishes a general sunset scheme and that any exemptions were meant to end rapidly. They note that subparagraph (A) is titled “temporary exemption,” that it was permitted to expire in 2013, and that subparagraph (B)(i) speaks of extending “the exemption under subparagraph (A).” Context, however, suggests subparagraph (B) is not part of some sunset scheme. Subparagraph (A)(ii)‘s exemptions did not have to expire in 2013; they could have lasted indefinitely. Subparagraph (B)(i)‘s “at any time” language expressly contemplates exemptions beyond 2013. That looks nothing
(c) In an appeal to public policy, respondents argue that subparagraph (B) was adopted to “funnel small refineries toward compliance over time” and that enforcing a continuity requirement helps advance that goal. Consistent with that view, the Tenth Circuit concluded the number of small refinery exemptions “should have tapered down” over time. Petitioners counter that the statute seeks to increase production of renewable fuel while offering an annual “safety valve” for small refineries. Neither the statute‘s text, structure, nor history affords sufficient guidance to choose between these competing narratives and metaphors. Instead, the analysis can be guided only by the statute‘s text—and that nowhere commands a continuity requirement. Pp. 396–399.
948 F. 3d 1206, reversed.
GORSUCH, J., delivered the opinion of the Court, in which ROBERTS, C. J., and THOMAS, BREYER, ALITO, and KAVANAUGH, JJ., joined. BARRETT, J., filed a dissenting opinion, in which SOTOMAYOR and KAGAN, JJ., joined, post, p. 400.
Peter D. Keisler argued the cause for petitioners. With him on the briefs were Ryan C. Morris, Eric D. McArthur, and Peter C. Whitfield.
Christopher G. Michel argued the cause for the federal respondent. With him on the brief were Acting Solicitor General Prelogar, Acting Assistant Attorney General Williams, Deputy Solicitor General Stewart, and Melissa Hoffer.
Matthew W. Morrison argued the cause for private respondents. With him on the brief were Cynthia Cook Robertson and Kevin M. Fong.*
*Briefs of amici curiae urging reversal were filed for the State of Wyoming et al. by Bridget Hill, Attorney General of Wyoming, James Kaste, Deputy Attorney General, and Matt VanWormer, Senior Assistant Attorney General, and by the Attorneys General for their respective States as follows: Jeff Landry of Louisiana, Austin Knudsen of Montana, Mike Hunter of Oklahoma, Ken Paxton of Texas, Sean D. Reyes of Utah, and
Briefs of amici curiae urging affirmance were filed for the State of Iowa et al. by Thomas J. Miller, Attorney General of Iowa, Jeffrey Thompson, Solicitor General, and Samuel P. Langholz, Assistant Solicitor General, Douglas J. Peterson, Attorney General of Nebraska, James A. Campbell, Solicitor General, and Justin D. Lavene and Joshua E. Dethlefsen, Assistant Attorneys General, and by the Attorneys General for their respective States as follows: Kwame Raoul of Illinois, Dana Nessel of Michigan, Keith Ellison of Minnesota, Ellen F. Rosenblum of Oregon, Jason R. Ravnsborg of South Dakota, and Mark R. Herring of Virginia; for the Advanced Biofuels Association by Rafe Petersen; for the Coalition for Renewable Natural Gas et al. by Sandra Franco and Jerome C. Muys, Jr.; for Growth Energy et al. by Seth P. Waxman, David M. Lehn, Ellen Steen, and Travis Cushman; and for the National Biodiesel Board by Ethan G. Shenkman, Jonathan S. Martel, William Perdue, and Sally L. Pei.
HOLLYFRONTIER CHEYENNE REFINING, LLC, et al. v. RENEWABLE FUELS ASSOCIATION et al.
No. 20–472
SUPREME COURT OF THE UNITED STATES
June 25, 2021
594 U.S. 382
GORSUCH, J.
OPINION
JUSTICE GORSUCH delivered the opinion of the Court.
Congress requires most domestic refineries to blend a certain amount of ethanol and other renewable fuels into the transportation fuels they produce. But when it first adopted these mandates, Congress temporarily exempted small refineries across the board. Looking beyond that initial period, Congress authorized individual small refineries to apply for additional hardship “extensions” from the federal government “at any time.” The question before us is whether a small refinery that manages to comply with renewable fuel mandates in one year is forever forbidden from applying for an “extension” in any future year.
I
In 2005 and 2007, Congress created the renewable fuel program (RFP). §§ 201, 202(a)(1), 121 Stat. 1519,
From the start, EPA has apportioned the nationwide volume mandates into individualized ones for each refinery.
Congress tempered its mandates in other ways too. For example, if a refinery is unable to generate or purchase sufficient credits in a given year, it may “carry forward” any deficit to the following year.
Most important for our case, however, is a different, if related, set of tempering features. Evidently, Congress was concerned that escalating RFP obligations could work special burdens on small refineries that lack the “inherent scale advantages of large refineries,” Sinclair Wyoming Refining Co. v. EPA, 887 F. 3d 986, 989 (CA10 2017), and sometimes supply a major source of jobs in rural communities, Brief for State of Wyoming et al. as Amici Curiae 19–25. To protect small refineries that produce (on average) fewer than 75,000 barrels a day “for a calendar year,”
Here‘s how things played out for small refineries once the law went into effect. Under subparagraph (A)(i), all small refineries were exempt through 2010. See Dept. of Energy, Office of Policy and International Affairs, D. Vashishat et al., Small Refinery Exemption Study 25 (Mar. 2011). In 2011, EPA extended that exemption for 13 small refineries under subparagraph (A)(ii)—and it extended the exemption for an additional 11 small refineries under subparagraph (B)(i). Id., at 37. As time went on, and as economic conditions fluctuated, EPA extended more exemptions under subparagraph (B)(i) in some years than in others. For example, EPA granted 8 extensions in 2013, but expanded that number to 31 in 2018. EPA, RFS Small Refinery Exemptions (May 20, 2021), https://www.epa.gov/fuels-registration-reporting-and-compliance-help/rfs-small-refinery-exemptions.
This case concerns three small refineries that initially received an exemption, saw it lapse for a period, and then petitioned for an exemption again under subparagraph (B)(i).
A group of renewable fuel producers objected. They petitioned for review of EPA‘s decisions in the Tenth Circuit, arguing the Agency acted “in excess of statutory jurisdiction, authority, or limitations” by granting the petitions.
II
A
Where Congress does not furnish a definition of its own, we generally seek to afford a statutory term “its ordinary or natural meaning.” FDIC v. Meyer, 510 U. S. 471, 476 (1994). Before us, the parties agree on one thing: The key word here—“extension“—is nowhere defined in the statute and it can mean different things depending on context.
Sometimes, as the renewable fuel producers observe and the court of appeals held, an “extension” can refer to an increase in time. See, e. g., 5 Oxford English Dictionary 597 (2d ed. 1989) (OED) (“Enlargement in duration“);
Ultimately, however, we agree with the renewable fuel producers and the court of appeals that subparagraph (B)(i) uses “extension” in its temporal sense—referring to the lengthening of a period of time. We find three textual clues telling. First, the initial exemption described in subparagraph (A)(i) is described temporally (as lasting “until calendar year 2011“).
B
Resolving that much, however, does not resolve this case. Really, it only takes us to the heart of the dispute. The
We agree. It is entirely natural—and consistent with ordinary usage—to seek an “extension” of time even after some lapse. Think of the forgetful student who asks for an “extension” for a term paper after the deadline has passed, the tenant who does the same after overstaying his lease, or parties who negotiate an “extension” of a contract after its expiration. Perhaps for reasons like these, the respondents and court of appeals are unable to point to a single dictionary definition of the term “extension” requiring unbroken continuity. To be sure, some definitions speak of an extension as a “continuation.” See, e. g., Black‘s Law Dictionary 703 (10th ed. 2014) (defining “extension” as “[t]he continuation of the same contract for a specified period” (emphasis added)). And the dissent urges us to read “extension” to mean “continuation.” Post, at 401 (opinion of BARRETT, J.). But even that term can denote a resumption after some interrupting lapse. See, e. g., 3 OED 828 (defining “continuation” as “the resumption of any interrupted action or course“); Webster‘s Collegiate Dictionary 220 (1936) (defining “continuation” as the “[a]ct of continuing; esp. a resumption“); B. Garner, Modern English Usage 214 (4th ed. 2016).
Much federal law proceeds on this same understanding. Under certain circumstances, a court “may . . . extend” a party‘s “time for appeal” even “after the expiration of
Still other examples exist. Maybe most notably, just last year Congress twice passed laws providing for the “extension” of public benefits that had lapsed or been interrupted. See Consolidated Appropriations Act of 2021, Pub. L. 116–260, § 203, 134 Stat. 1182 (providing an “extension” of unemployment compensation starting on December 26, 2020, after lapsing on July 31, 2020); Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116–136, § 2114, 134 Stat. 334 (providing an “extension” of unemployment benefits starting in 2020, after lapsing in 2013). The dissent gives these particular examples short shrift because they appear in statutes “passed in an emergency context” a decade after the statute at issue here. Post, at 406. We do not doubt that meaning may change with time, but unless the dissent thinks the ordinary meaning of “extension” changed in just 10 years, it‘s hard to understand why these enactments don‘t shed at least some light on today‘s question. If anything, the emergency context in which these laws were passed—forcing legislators to use a term on short notice—would seem to provide useful evidence of ordinary meaning.
Beyond that, the dissent counters by attempting to recast all these varied examples of temporal extensions after interruption. It imagines, for example, that when a teacher extends a paper deadline after a lapse, that act of grace always
We do not mean to suggest that every use of the word “extension” must be read the same way. On occasion, for example, Congress requires “extensions” to be “consecutive” or “successive.” E. g.,
Further statutory clues confirm this understanding. Recall that subparagraph (B)(i) authorizes small refineries to seek hardship exemptions “at any time.”
We find another feature telling too. Next door, subparagraph (A) uses the term “extension” without a continuity requirement. To see how subparagraph (A) was designed, imagine a small refinery avails itself of the blanket exemption in 2008 and 2009 under subparagraph (A)(i). Then in 2010, because of an increase in production capacity, the refinery loses “small refinery” status under
The refineries suggest we need to place still another point in their column. They direct our attention to a regulation EPA adopted in 2014 to clarify the bounds of “small refinery” status. When EPA first sought public comment, some suggested a refinery should be eligible for exemption only if it constantly remained “small” from 2006 onward—and EPA expressly rejected that view in favor of revisiting annually whether a refinery falls above or below the “small refinery” threshold.
But this much we do not see. In the first place, we do not construe subparagraph (B) as part of some sunset scheme. To be sure, subparagraph (A)‘s exemptions were permitted to expire in 2013, but did not have to do so. In theory, EPA could have granted a small refinery exemption under subparagraph (A)(ii) that lasted many years or indefinitely. See
Additionally, even assuming (without granting) that subparagraph (B) really did represent only some sort of excep
III
Everything else the respondents offer in defense of the court of appeals’ judgment involves surmise about legislative purpose and arguments from public policy. Like the Tenth Circuit, they emphasize that, by the time the petitioners sought new exemptions in 2017 and 2018, small refineries already “had many years to ponder . . . whether it made
The dissent seemingly agrees. It acknowledges that Congress provided other ameliorating provisions to address various challenges to the fuel market. Post, at 407–409. For example and as we have already seen,
But, as usual, the other side presents a plausible competing narrative. On the petitioners’ account, the statute seeks to increase production of renewable fuel while also offering a “safety valve” each year for small refineries that might otherwise face extinction. According to the small refineries, the respondents’ competing “funnel” metaphor makes little sense because a small refinery‘s compliance in one year is in no way dispositive of its ability to comply in a future year. Instead, compliance depends on numerous factors unique to each year and circumstances over which small refineries
The petitioners say their “safety valve” analogy fits better for other reasons too. As the dissent acknowledges, Congress included many other “safety valve” provisions to address various challenges to the market that may arise at any time, including regional shortages and economic hardships. Post, at 407–409. Surely, Congress could have chosen to provide similar relief targeted to small refineries. Nor is there anything odd about the fact that Congress chose only to protect existing small refineries rather than new entrants. Often Congress chooses to protect existing market participants from shifts in the law while applying new restrictions fully to future entrants. Maybe, too, the petitioners suggest, Congress wasn‘t particularly concerned with new entrants in 2008 because, until last year, there had not been a new refinery of any size in this country for almost 50 years. See Blackmon, First Major U. S. Oil Refinery Since 1977 Targets Bakken Shale Crude, Forbes (July 25, 2020), https://www.forbes.com/sites/davidblackmon/2020/07/25/first-new-us-oil-refinery-since-1977-targets-bakken-shale-crude/.
The petitioners stress as well that, even on the respondents’ account, Congress did create a “safety valve” rather than a “funnel” for some small refineries: Those with an unbroken record of failing to comply with the RFP may continue to seek and obtain extensions forever without being “funneled” toward compliance. Supra, at 395. Yet the
Beyond that, the petitioners note, if subparagraph (B)(i) really did create a “miss one and done” rule for small refineries able to comply with RFP mandates in a single year the statute could wind up reducing overall domestic fuel supply—all without adding a single additional gallon of renewable fuel to the mix. See
We mention all this not because we pick sides. Neither the statute‘s text, structure, nor history afford us sufficient guidance to be able to choose with confidence between the parties’ competing narratives and metaphors. We mention this only to observe that both sides can offer plausible accounts of legislative purpose and sound public policy—and that it would therefore be a mistake to rely on appeals to some abstract intuition that the number of small refineries receiving exemptions ”should have tapered down” over time. 948 F. 3d, at 1246 (emphasis added). Instead, our analysis can be guided only by the statute‘s text—and that nowhere commands a continuity requirement.
*
The respondents have not shown that EPA‘s approval of the petitioners’ extension requests was in excess of the Agency‘s statutory authority.
Reversed.
HOLLYFRONTIER CHEYENNE REFINING, LLC, et al. v. RENEWABLE FUELS ASSOCIATION et al.
No. 20–472
SUPREME COURT OF THE UNITED STATES
June 25, 2021
594 U.S. 382
BARRETT, J.
When Congress amended the Clean Air Act to add the Renewable Fuel Program (RFP), it gave small refineries a temporary exemption from compliance. Congress then vested the Environmental Protection Agency (EPA) with authority to grant “extension[s] of the exemption” in certain instances. The question in this case is straightforward: Does this provision limit EPA to prolonging exemptions currently in place, or does it enable EPA to provide exemptions to refineries that lack them? The statute‘s text and structure direct a clear answer: EPA cannot “extend” an exemption that a refinery no longer has. Because the Court‘s contrary conclusion caters to an outlier meaning of “extend” and clashes with statutory structure, I respectfully dissent.
I
Refineries regulated by the RFP come in all shapes and sizes—ranging from those run by Fortune-500 companies like HollyFrontier to local outfits with less fuel-blending capacity and access to capital. So, as the Court notes, Congress made certain accommodations for small refineries that might otherwise struggle to satisfy their RFP obligations.
To start, Congress in subparagraph (A)(i) gave all small refineries—including petitioners (HollyFrontier)—a “[t]emporary exemption” from the program‘s renewable-fuel requirements; the exemption ran from the RFP‘s passage in 2005 until 2011.
Congress also provided small refineries an avenue to petition for an “extension” of these initial exemptions. This is the provision at the heart of this case:
“A small refinery may at any time petition [EPA] for an extension of the exemption under subparagraph (A) for the reason of disproportionate economic hardship.”
§ 7545(o)(9)(B)(i) .
Deciding that this subparagraph uses “extension” to mean “continuation” should be an easy call. Following HollyFrontier‘s lead, however, the Court forgoes the obvious answer.
A
HollyFrontier lays its cards on the table. It does not dispute that when used to refer to “an increase in the length of time,” the word “extension” can—and commonly does—refer to something that is prolonged without interruption. Brief for Petitioners 29. Yet, HollyFrontier insists, the term “extension” is not always used that way. Instead, it might sometimes refer to a “non-continuous extension”—in other words, an extension of something that used to exist but no longer does. Ibid. Because there is “nothing unnatural” about reading the term this way, HollyFrontier urges us to embrace this interpretation. Id., at 31.
One might think that this argument is an uphill climb—after all, we do not usually pin an interpretation to “the outer limits of a word‘s definitional possibilities” at the expense of its ordinary or common meaning.1 FCC v. AT&T Inc., 562 U. S. 397, 407 (2011) (alterations omitted). But the Court takes HollyFrontier‘s framing and runs with it. The Court points out that the word “extension” “can” or “may” be used to refer to post-lapse renewals. Ante, at 390. And because the statute thus “commands” no “continuity requirement,” ante, at 399, the Court concludes that HollyFrontier‘s reading must be right—which means that EPA can provide an “extension” of an exemption that is no longer in effect.
Boiled down, the Court‘s position is that HollyFrontier wins because its reading is possible. But I would ask, as we typically do, how the term “extension” “is most naturally read.” Florida Dept. of Revenue v. Piccadilly Cafeterias, Inc., 554 U. S. 33, 39 (2008) (emphasis added); see also Romag Fasteners, Inc. v. Fossil Group, Inc., 590 U. S. ———, ——— (2020). The Tenth Circuit‘s answer to that question is spot on: The “ordinary definitions of ‘extension,’ along with common sense, dictate that the subject of an extension must be in existence before it can be extended.” Renewable Fuels Assn. v. EPA, 948 F. 3d 1206, 1245 (2020).
1
In assessing the best reading of the phrase “extension of the exemption,” the Court is of course correct that context matters. Here, though, context cuts respondents’ way. Subparagraph (B)(i) does not use “extension” in a vacuum; rather, it permits EPA to grant an “extension of the exemption under subparagraph (A).”
The Court acknowledges these definitions, yet still parrots HollyFrontier‘s point that no definition of “extend” requires “unbroken continuity.” Ante, at 390. But without something that presently exists, there is nothing to “carr[y] forward” or “prolong.” The word “extension,” then, plainly contemplates a “continuation of the same” thing as currently exists—in contrast to the term “renewal,” for example, which refers to a “restoring” or “reestablishing” of something that used to exist. Compare Black‘s Law Dictionary 622 (8th ed. 2004), with id., at 1322. Or, to put it slightly differently, the word “extension” “‘imports the continuance of an existing thing.‘” Brief for Federal Respondent 21 (quoting W. Anderson, A Dictionary of Law 437 (1996)).
Common usage confirms as much. Consider a hotel guest who decides to spend a few more days on vacation. That guest likely would ask to “extend [her] visit.” Random House Webster‘s Unabridged Dictionary 684 (2d ed. 2001) (emphasis deleted). Now suppose the same guest returns to the same hotel three years later and, upon arrival, requests to “extend” her prior stay. The hotel employee would no doubt “scratch her head.” Tr. of Oral Arg. 26. Why? Because it is highly unnatural to speak of “extending” a stay that ended years before.
Similar examples spring readily to mind. One would not normally ask to “extend” a newspaper subscription long after it expired. Or request, after child number two, to
By dismissing the need for a continuing connection between the first period and the second, the Court forgoes the “far more natural” reading of extend. Taniguchi v. Kan Pacific Saipan, Ltd., 566 U. S. 560, 569 (2012). The upshot? A refinery could ask to “extend” an exemption it had in 2010 in the year 2040, with no need to connect the two periods. It defies ordinary usage to deem the second exemption “an extension” of the first, as opposed to a new, standalone exemption. HollyFrontier recognizes as much, seeking to deflect this example as “extreme” and “highly unlikely.” Tr. of Oral Arg. 28. Unlikely or not, it follows logically from HollyFrontier‘s reading of “extension”—which shows just how far this interpretation strays from the term‘s ordinary meaning.
2
The Court‘s counterexamples do not help its case. Take its discussion of deadline “extensions”—as given, say, to a student who seeks more time to complete a paper even after the due date has passed or to a party who requests leave to file a document after the court‘s original deadline. See ante, at 390–392. In this context, “extension” refers to “an additional period of time given one to meet an obligation.” Random House Webster‘s Unabridged Dictionary, at 684; see also
Put aside for the moment that this case does not involve the extension of a deadline. The Court‘s reasoning still breaks down because when a deadline “extension” is granted, there is no “lapse”: The new deadline runs back to the old. In other words, a post-due-date extension does not start a new period for timely action. It forgives the missed deadline by retroactively prolonging the pre-existing period. Even in the Court‘s deadline-extension examples, then, there is continuity.4
Problems likewise plague the Court‘s other hypotheticals involving delay in “seek[ing] an ‘extension,‘” such as the tenant who asks to “extend” her lease after overstaying it or parties who negotiate to “extend” a contract after it expires. Ante, at 390. These examples confuse the time at which one may permissibly request an extension with what is being extended. It may be that the tenant could request an “extension” of the year-one lease at some point after the start of year two. But, if approved, the tenant‘s lease would still
The Court next reaches for recent congressional enactments—or more specifically, for their captions. The title of two COVID–19 relief provisions, the Court notes, purported to provide an “extension” of certain unemployment benefits that had previously lapsed. See ante, at 391 (quoting Pub. L. 116–260, § 203, 134 Stat. 1182; Pub. L. 116–136, § 2114, 134 Stat. 334). I will start with the obvious: Invoking captions from “different statute[s] altogether,” passed in an emergency context over a decade after the RFP, “does not have much force.” A. Scalia & B. Garner, Reading Law: The Interpretation of Legal Texts 172 (2012). The argument is made weaker still by the fact that Congress used “extension” the other way in the RFP statute itself. See infra, at 407. And it is telling that apart from the COVID–19 relief provisions, HollyFrontier could identify no other instance in which Congress used “extension” in the way that HollyFrontier proposes.
At the very most, the Court‘s COVID–19 examples show that “extend” does not “always includ[e] a strict continuity requirement.” Ante, at 392 (emphasis added). But “[t]hat a definition is broad enough to encompass one sense of a word does not establish that the word is ordinarily understood in that sense.” Taniguchi, 566 U. S., at 568. Because respondents’ interpretation of “extension” is “far more natural,” id., at 569, it is the presumptive favorite—barring compelling evidence to the contrary in the statute‘s structure. As it turns out, statutory structure favors respondents’ reading too.
B
1
Four structural features of the RFP, in particular, cut for respondents’ interpretation and against the Court‘s.
First, respondents’ reading of “extension” tracks the only other use of the term in the RFP. A nearby “[w]aiver” provision allows EPA to issue an “order to reduce, for up to a 60-day period,” the biomass-based diesel fuel requirements under certain conditions.
Second, the RFP is replete with express grants of waiver authority of the type the Court reads into subparagraph (B)(i)‘s reference to “extension[s].” The statute‘s “general” waiver provision specifies that EPA, under certain economic or fuel-market conditions, “may waive the requirements” of the RFP “in whole or in part on petition by” refineries, among other entities.
Third, note that when assessing petitions for an “extension of the exemption,” EPA must consider “the findings of the study under subparagraph (A)(ii)”—i. e., the Department of Energy study to be completed by 2008. See
Fourth, other provisions help ease the burden on small refineries in times of economic hardship. To ensure that EPA can appropriately adjust the RFP requirements it sets, the statute requires EPA to review “the feasibility of achieving compliance” and “impacts of” the RFP on regulated refineries.
2
The Court‘s structural counters are not persuasive.
First, the Court cites the statute‘s instruction that a small refinery can file a subparagraph (B)(i) petition “‘at any time.‘” See ante, at 392–393 (quoting
This reading does not leave “at any time” without important work to do. For one, the phrase means that refineries need not seek exemptions before EPA‘s fuel standards are due—which is November 30 in the calendar year before the refinery must apply.
Second, the Court leans on the fact that “subparagraph (A) uses the term ‘extension’ without a continuity requirement.” Ibid. That must be so, according to the Court, because a refinery could fall out of small-refinery status, say, in 2010, yet still receive an “extension of the exemption” for 2011 under subparagraph (A)(ii).
It is hard to know quite what to make of the Court‘s theory. It never played out in practice, as EPA regulations meant that no small refinery lost exempt status during the years in question. See 72 Fed. Reg. 23925 (2007); 75 Fed. Reg. 14866 (2010); see also Tr. of Oral Arg. 66–67. And the theory was neither passed on by the court below nor discussed by respondents here, as it appeared for the first time in a footnote of HollyFrontier‘s reply brief. Reply Brief 10, n. 6. But in any event, the Court‘s account does not seem to prove that subparagraph (A) permits a “laps[e].” Ante, at 393. What EPA may “extend” via subparagraph (A)(ii) is “the exemption under clause (i)”—that is, the initial, automatic exemption that excused all small refineries from compliance through 2010. The “exemption under clause (i)” thus existed in the year 2010 by virtue of statute, even if a particular refinery was not in a position to take advantage
II
The Court declines to “pick sides” in the parties’ dispute over which reading of subparagraph (B)(i) best fulfills congressional purpose. Ante, at 399. At the same time, the Court criticizes respondents’ reading for causing the “strange effect” of treating the least compliant refineries most favorably. Ibid. In the Court‘s telling, extensions that function as waivers (its view) give refineries that comply in some years a boost when they need help. Extensions that prolong a grace period (respondents’ view) reward refineries that never manage to comply.
But respondents’ argument that subparagraph (B)(i) extensions give small refineries an initial runway—rather than a down-the-road safety valve—is not at all odd if, as respondents assert, Congress intended the RFP to funnel all refineries into eventual compliance.5 Maybe respondents’ story about the statute‘s purpose is right; maybe it is wrong. In all events, though, it is not “strange”—in fact, the Court deems this account just as “plausible” as any. Ibid.
Plus, the Court‘s reading of subparagraph (B)(i) yields its own odd results: It means that EPA‘s exemption power cov
In the end, the parties’ dueling accounts of purpose underscore the wisdom of sticking to the statutory text and structure. Because, in my view, both clearly favor respondents’ reading, I respectfully dissent.
