By Andi Anderson
The Iowa Biodiesel Board (IBB) has voiced strong concern over a new U.S. Environmental Protection Agency (EPA) draft rule addressing the reallocation of Small Refinery Exemptions (SREs) under the Renewable Fuel Standard (RFS).
The proposal offers three options: reallocating 100% of the waived gallons, reallocating 50%, or making no reallocation at all. Any reallocated volumes would be added to the 2026–2027 RFS blending requirements.
Grant Kimberley, executive director of IBB, emphasized the importance of protecting the RFS’s integrity. “We appreciate the EPA’s thoughtful approach in addressing Small Refinery Exemptions that were inherited from the previous administration. However, it’s critical that the agency fully accounts for all waived gallons, while also working quickly to finalize the 2026–2027 RVO proposal,” he said.
Kimberley warned that anything less than a full reallocation would undermine the RFS and hurt biodiesel producers and soybean farmers.
Kimberley added that a complete reallocation would provide the certainty needed for Iowa’s biodiesel market to grow and strengthen. “A full reallocation will provide much needed certainty for our state’s biodiesel producers and farmers, many struggling economically due to lackluster growth as a result of uncertain federal policy,” he noted.
Iowa remains the nation’s top biodiesel producer and leading soybean oil supplier. In 2024, the state used roughly two billion pounds of soybean oil—equal to the oil from about 178 million bushels of soybeans, or over 30% of its soybean crop—for biodiesel production.
This industry is a major economic driver, contributing an estimated $123 million in labor income, $520 million in value added, and $2.2 billion in total output to Iowa’s economy, according to a study by Decision Innovation Solutions.
The IBB is urging the EPA to finalize a rule that ensures full reallocation of waived gallons, giving farmers and fuel producers the stable policy environment needed to expand renewable fuel production and support rural economies.
Photo Credit: vista-mipan
Categories: Iowa, Energy