Iowa Corn Growers Support EPA Biofuel Reallocation Proposal

By Andi Anderson

The Environmental Protection Agency (EPA) has released a supplemental rule addressing small refinery exemptions (SREs) as part of its ongoing Renewable Fuel Standard (RFS) rulemaking process. The proposal seeks public input on how to handle fuel volume reallocations for recent and future exemptions.

“On Tuesday, the Environmental Protection Agency released their supplemental rule on the recently announced small refinery exemptions (SREs). EPA is co-proposing additional volumes representing complete (100 percent) reallocation or 50 percent reallocation for SREs granted in full or in part for 2023 and 2024, as well as those projected to be granted for 2025, as part of the ongoing RFS rulemaking.

In addition, EPA is also asking for comments on no reallocations at all. EPA is also providing more information on its projection of SREs to inform the calculation of the 2026 and 2027 percentage standards.”

Support from Iowa’s corn industry emphasizes the importance of protecting ethanol demand. “With the current state of the farm economy and a USDA projected record corn crop, farmers cannot afford to lose any demand for biofuels such as ethanol,” said Mark Mueller, Iowa Corn Growers Association President and farmer from Waverly, Iowa.

“ICGA appreciates the Trump Administration’s support for American farmers. We encourage the EPA to reallocate 100% of the 2023-2025 SRE’s and add those volumes to 2026 and 2027 RFS obligations.

This will ensure renewable fuel demand is maintained at the levels intended. Any increase of RINs in the market due to SREs could significantly impact the value of renewable fuels and limit consumption.”

The EPA proposal includes a 45-day public comment period and a virtual public hearing scheduled for October 1, 2025, before any final decision is made.

This potential reallocation aims to keep renewable fuel requirements strong and consistent, giving biofuel producers and the agricultural sector more certainty.

Iowa corn industry representatives believe full reallocation will maintain intended market demand, stabilize Renewable Identification Numbers (RINs), and support ethanol as a key component of America’s energy strategy.

Photo Credit:iowa-corn