Ankeny, Iowa: The Iowa Biodiesel Board (IBB) has called on the U.S. Environmental Protection Agency (EPA) to move swiftly in finalizing the Renewable Fuel Standard (RFS) rule for 2026 and 2027 and to fully reallocate nearly 200 small refinery exemptions. In its formal comments submitted to the EPA, the organization warned that failure to act could cost U.S. soybean farmers between $3.2 billion and $7.5 billion in crop value over the next two years, citing estimates from the World Agricultural and Economic Environmental Services (WAEES) model, reports Iowabiodiesel.org.
Grant Kimberley, Executive Director of the Iowa Biodiesel Board, said that biomass-based diesel contributes about 10 percent of the value of each bushel of soybeans grown in the U.S., adding that this support is critical as farmers face record yields amid uncertain global markets.
The IBB’s comments also highlighted the vulnerability of Iowa’s independent biodiesel producers, who lack the financial strength of larger companies to cope with extended periods of policy uncertainty. Kimberley warned that losing these producers would be a major setback for the renewable fuels industry, eliminating years of investment and removing key local markets for Iowa’s farmers at a time when they can least afford it.
The organization urged the EPA to reallocate all small refinery exemptions for 2023 through 2027, finalize Renewable Volume Obligations (RVOs) before the next compliance year begins, and maintain strong volume targets to ensure stability for farmers and producers.
IBB expressed appreciation for the EPA’s recognition of the expanding production capacity and feedstock investments driving growth in U.S.-made biodiesel, renewable diesel, and sustainable aviation fuel. However, the group stressed that delays in finalizing the rule leave the biomass-based diesel sector uncertain and unable to plan future investments. Kimberley noted that Iowa farmers are already preparing for the next planting season and need clarity to make informed decisions.
According to a national study commissioned by Clean Fuels Alliance America, Iowa’s biodiesel industry supports 12,000 jobs and generates $3.5 billion in economic activity each year. In 2024, the state’s 10 operating biodiesel plants produced about 350 million gallons, making Iowa the leading biodiesel-producing state in the country.
The IBB’s comments were submitted under EPA Docket ID No: EPA-HQ-OAR-2024-0505, pertaining to the Renewable Fuel Standard Program: Standards for 2026 and 2027.
