A federal court slammed the Environmental Protection Agency on Friday for ignoring the high cost of ethanol credits in denying a small family-owned oil refiner’s petition for relief from the agency’s renewable fuel program.

The Fourth Circuit Court of Appeals ruled that EPA’s decision under the Obama administration in 2016 was “arbitrary and capricious,” because it ignored the facts presented to it by the company, Ergon-West Virginia Inc., that showed it was facing hardship in meeting the Renewable Fuel Standard’s requirements to blend ethanol.

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