Iowa Biodiesel Board urges EPA to reallocate SREs, protect farm economy

The Iowa Biodiesel Board submitted formal comments to the U.S. EPA Oct. 30 urging the agency to quickly finalize the 2026-’27 Renewable Fuel Standard rule and fully reallocate nearly 200 small-refinery exemptions (SREs).

The comments warn 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, according to data from the World Agricultural and Economic Environmental Services model.

“U.S. biomass-based diesel adds value to every acre of soybeans grown, accounting for roughly 10 percent of each bushel’s worth—a contribution that is especially vital this year as America’s soybean farmers face record yields amid unpredictable global markets,” said Grant Kimberley, executive director of the Iowa Biodiesel Board.

The IBB’s comments emphasize the critical situation facing Iowa’s independent biodiesel producers in particular, who lack the financial reserves of larger competitors to weather extended periods of regulatory uncertainty.

“The loss of Iowa’s independent biodiesel producers would represent a significant setback for the renewable fuels industry, eliminating production capacity that took years to develop and depriving Iowa farmers of vital local markets for their crops at a time when they can least afford it,” Kimberley stated in the comments.

The organization is calling on EPA to:

• Reallocate 100 percent of SREs for 2023, 2024 and projected 2025, 2026 and 2027.

• Finalize renewable volume obligations (RVOs) before the new compliance year begins.

• Maintain strong volume targets to ensure market certainty for farmers and producers.

IBB thanked EPA for recognizing the expanded capacity and feedstock investments fueling the growth of U.S.-made biodiesel, renewable diesel and sustainable aviation fuel, while stressing the urgency of timely rulemaking to enable planned investments.

“Until that happens, the biomass-based diesel industry is left uncertain and unable to fully plan or adapt to the proposed rule changes,” Kimberley noted, adding that Iowa farmers are already making planting decisions for the next growing season.

Iowa’s biodiesel industry supports 12,000 jobs and generates approximately $3.5 billion in economic opportunity, according to a national study commissioned by Clean Fuels Alliance America.

In 2024, the state’s 10 operating biodiesel plants produced an estimated 350 million gallons, making Iowa the top biodiesel-producing state in the nation.

The comments were submitted to EPA Docket ID No: EPA-HQ-OAR-2024-0505 regarding the Renewable Fuel Standard Program: Standards for 2026 and 2027.