STATEMENT: EPA Draft Rule on Reallocation of RFS Refinery Exemptions Furthers Uncertainty for Biodiesel Producers and Farmers

(ANKENY, Iowa) – The Iowa Biodiesel Board reiterated its call for upholding the integrity of the Renewable Fuel Standard today, in response to the draft rule issued by U.S. Environmental Protection Agency regarding the potential reallocation of recently granted Small Refinery Exemptions.

Included in the draft rule, EPA proposed reallocating 100% of the RFS exemptions, or only 50% of them, and also requested comments on the possibility of no reallocations. Any reallocated volumes would be added to the 2026-2027 RFS blending volumes under the proposal.

Grant Kimberley, IBB executive director, issued the following statement:

“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. Anything less than a full reallocation of any legitimate SREs, as the Trump administration promised at the end of its first term, would erode the integrity of the RFS and the impact to biodiesel producers and soybean farmers. 

“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. We look forward to a final rule that allows the biodiesel market to grow—supporting fuel producers, farmers and consumers.”

Iowa is the nation’s leading biodiesel-producing state and soybean oil producer. The two billion pounds of soybean oil used to produce biodiesel in the state in 2024 were equivalent to the oil from nearly 178 million bushels of soybeans–or more than 30% of the state’s soybean crop. 

According to a study by Decision Innovation Solutions, biodiesel contributes $123 million in labor income, $520 million in value added and $2.2 billion in total output (sales) to Iowa’s economy.

For More Information:

Jenna Rose, IBB