The Iowa Biodiesel Board has urged the U.S. Environmental Protection Agency (EPA) to provide greater certainty on how it will handle refinery exemptions under the Renewable Fuel Standard (RFS), following the agency’s decision to grant full or partial waivers to 38 refineries covering the years 2016–2024, reports Iowa Agribusiness Radio Network.
Grant Kimberley, executive director of the board, said the move was a step forward but left key questions unresolved. “We welcome EPA’s decision to move this process forward, and it is encouraging to see some progress toward resolving the uncertainty. At the same time, many questions remain about the outstanding small refinery exemptions and how EPA intends to address reallocation,” he said.
Kimberley highlighted concerns about how renewable identification numbers (RINs) tied to the exemptions will be managed, especially for 2023–2024. “If the gallons are reallocated into the program, it would provide the certainty our industry and farmers desperately need. If not, this could have very negative consequences for biodiesel producers and soybean oil demand,” he warned.
The board stressed that Iowa’s biodiesel sector, much of it farmer-owned, is already under financial pressure. “Row crop farmers are already struggling with high costs and negative profit margins, and many of Iowa’s biodiesel producers are essentially on life support,” Kimberley said.
He also called on the federal government to uphold earlier commitments that any waived volumes would be reallocated. “Without that, we face another major hit to agriculture and independent biodiesel producers at the worst possible time,” he added.
The EPA has indicated it will address the exemptions’ impact in future rulemaking. The Iowa Biodiesel Board said it will continue working with the agency to ensure the integrity of the RFS is maintained.
