July 20 (Reuters) - The U.S. Environmental Protection Agency must reconsider its denial of Ergon’s 2016 application for an exemption from the nation’s biofuel laws after it relied on an “error-riddled” analysis, a federal appellate court judge ruled on Friday.
The EPA relied on a recommendation from the Department of Energy that, among other things, failed to take into account that the small West Virginia refinery produced high levels of diesel that may not easily be blended and sold into the local market, according to the ruling out of the 4th U.S. Circuit Court of Appeals in Maryland.
The decision will likely bolster supporters of the small refinery exemptions, which have risen significantly under President Donald Trump. The biofuel industry has criticized the expansion, saying it undercuts the U.S. Renewable Fuel Standard. (Reporting by Jarrett Renshaw; editing by Jonathan Oatis)