The court basically ruled that refiners couldn't be fined if nobody could or would make the biofuels demanded by EPA:
EPA Cellulosic Biofuel Regulation Rejected by Court
An Environmental Protection Agency rule mandating refiners generate or purchase advanced biofuels was overturned by a federal appeals court in Washington, after producers failed to make any commercial supplies last year...When you put it that way, it does seem pretty ridiculous.
“Apart from their role as captive consumers, the refiners are in no position to ensure, or even contribute to, growth in the cellulosic biofuel industry,” the court said in a 14-page ruling. According to the court, the EPA rule tells producers, “Do a good job, cellulosic fuel producers. If you fail, we’ll fine your customers.”